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Economics Problem. Thank You! Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that

Economics Problem. Thank You!image text in transcribed

Consider the following two mutually exclusive alternatives for reclaiming a deteriorating inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.15% a. If MARR is 12% per year, which alternative is better? b. What is the IRR on the incremental cash flow [ie., (Y-X) C. If the MARR is 27.6% per year, which alternative is better? d. What is the simple payback period for each alternative? e. Which alternative would vou recommend? Click the icon to view the alternat Data Table Click the icon to view the interest per year a. The PW of the alternative X is Alternative EOY - $105,000 $45,000 S51,000 $78,245 27.15% -$105,000 $0 $0 S215,843 27.15% IRR Print Done

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