Find the IRR of the difference between the base alternative and second choice alternative.

Find the IRR of the difference between the current base alternative and third choice.

Which alternative should be chosen?

A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. At EOY 10, alternative IlI would be replaced with another alternative li having the same installed cost and net annual revenues. If MARR is 9% per year, which alternative r any shold be chosen? Use the incremental IRR procedure. Il $40,000 $25,000 $20,000 $6,500 $5,650 $5,250 Installed cost Net annual revenue Salvage value Useful life Calculated IRR 20 years 15.3% 20 years 22.2% 10 years 22.9% Which altemative would you choose as a base? Choose the correct answer below OA Alternative OB Alternative Alternative ara Find the IRR of the difference between the base alternativeltund the second-choice alternative. |)-%. (Round to one decimal place.) IRR (1// 1-Inl x a