Data for two alternatives are as follows:

A B

INVESTMENT 35,000 50,000

ANNUAL BENEFITS 20,000 25,000

ANNUAL O&M 6,450 13,830

ESTIMATED LIFE YEARS 4 8

NET SALVAGE VALUE 3,500 0

Use the Annual Conventional Method: Blank 1

Use the Annual Modified l Method: Blank 2

USE IRR METHOD

Question 5 5 Points Data for two alternatives are as follows: A B INVESTMENT 35,000 50,000 ANNUAL BENEFITS 20,000 25,000 ANNUAL O&M 6,450 13,830 ESTIMATED LIFE YEARS 8 NET SALVAGE VALUE 3,500 0 Using an interest rate of 20%, which alternative should be chosen? Use the Annual Conventional Method: Blank 1 Use the Annual Modified I Method: Blank 2 + Blank 1 Add your answer Blank 2 Add your answer Question 5 5 Points Data for two alternatives are as follows: A B INVESTMENT 35,000 50,000 ANNUAL BENEFITS 20,000 25,000 ANNUAL O&M 6,450 13,830 ESTIMATED LIFE YEARS 8 NET SALVAGE VALUE 3,500 0 Using an interest rate of 20%, which alternative should be chosen? Use the Annual Conventional Method: Blank 1 Use the Annual Modified I Method: Blank 2 + Blank 1 Add your answer Blank 2 Add your