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Data for four mutually exclusive alternatives are given in the table below. Alt. A Alt. B Alt. C Initial Cost $15,000 $12,000 $3,500 $3,000 $8,000
Data for four mutually exclusive alternatives are given in the table below. Alt. A Alt. B Alt. C Initial Cost $15,000 $12,000 $3,500 $3,000 $8,000 $2,100 EUAB Salvage Value $2,000 $2,500 $1,500 Life in Years 10 10 10 Yields the following graph: $25,000 $21,000 $17,000 $13,000 $9,000 $5,000 $1,000 0% 5% 10% 15% 20% ($3,000) ($7,000) Alternative A -Alternative B - Alterative a. Based on the graph above and table, construct a Choice Table for the Alternatives given, including the "Do Nothing" option. Find the exact interest rate for the first cross over point and estimate the others. Use the graph to narrow the interest rate. b. If the MARR for a company was 10%, which Alternative would they choose? Data for four mutually exclusive alternatives are given in the table below. Alt. A Alt. B Alt. C Initial Cost $15,000 $12,000 $3,500 $3,000 $8,000 $2,100 EUAB Salvage Value $2,000 $2,500 $1,500 Life in Years 10 10 10 Yields the following graph: $25,000 $21,000 $17,000 $13,000 $9,000 $5,000 $1,000 0% 5% 10% 15% 20% ($3,000) ($7,000) Alternative A -Alternative B - Alterative a. Based on the graph above and table, construct a Choice Table for the Alternatives given, including the "Do Nothing" option. Find the exact interest rate for the first cross over point and estimate the others. Use the graph to narrow the interest rate. b. If the MARR for a company was 10%, which Alternative would they choose
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