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I want full solution plz Problem 3 Chapter 8 Incremental Analysis (50 Points) Consider four mutually exclusive alternative investments that have 11 year useful lives
I want full solution plz
Problem 3 Chapter 8 Incremental Analysis (50 Points) Consider four mutually exclusive alternative investments that have 11 year useful lives and a salvage value of $900. If the Minimum Attractive Rate of Return (MARR) is 7%, which alternative should be selected? Initial Cost: A. $3,000 B. $2,000 C. $5,000 D. $4,000 The net annual income (EAB) ), after paying all operating expenses is projected at: A. $447 B. $259 C. 5885 D. 5651 Nuse avioal Caluaion. Computations: (Use back of facing page or last page in this exam booklet, if necessary) PWBas=EUAB(P/A,7%,11)+Salvage(PPWmenA=447.00(7.499)+900.00(0.4751)=3,352.05+427.59=3,779.64 PWBenB=259.00(7.499)+900.00(0.4751)=1,942.24+427.59=2,369.83 Complete this problem on the next two pages using the information on this page. PWBesc=885.00(7.499)+900.00(0.4751)=6,636.62+427.59=7,064.21 PWBCD=651.00(7.499)+900.00(0.4751)=4,881.85+427.59=5,309.44 Pare 6 of 12 Perform Incremental Analysis to select the best alternative using the information in the table on the previous page. Choice: ages Problem 3 Chapter 8 Incremental Analysis (50 Points) Consider four mutually exclusive alternative investments that have 11 year useful lives and a salvage value of $900. If the Minimum Attractive Rate of Return (MARR) is 7%, which alternative should be selected? Initial Cost: A. $3,000 B. $2,000 C. $5,000 D. $4,000 The net annual income (EAB) ), after paying all operating expenses is projected at: A. $447 B. $259 C. 5885 D. 5651 Nuse avioal Caluaion. Computations: (Use back of facing page or last page in this exam booklet, if necessary) PWBas=EUAB(P/A,7%,11)+Salvage(PPWmenA=447.00(7.499)+900.00(0.4751)=3,352.05+427.59=3,779.64 PWBenB=259.00(7.499)+900.00(0.4751)=1,942.24+427.59=2,369.83 Complete this problem on the next two pages using the information on this page. PWBesc=885.00(7.499)+900.00(0.4751)=6,636.62+427.59=7,064.21 PWBCD=651.00(7.499)+900.00(0.4751)=4,881.85+427.59=5,309.44 Pare 6 of 12 Perform Incremental Analysis to select the best alternative using the information in the table on the previous page. Choice: agesStep by Step Solution
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