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Model (C) Model (X) Model (Y) Initial Cost $7,500 $10,000 $12,500 Life (years) 4 4 4 Annual Savings $2,500 $2,750 $7,000 Based on incremental IRR
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| Model (C) | Model (X) | Model (Y) |
| Initial Cost | $7,500 | $10,000 | $12,500 |
| Life (years) | 4 | 4 | 4 |
| Annual Savings | $2,500 | $2,750 | $7,000 |
- Based on incremental IRR analysis, which model is the best option?
- Model C
- Model Y
- Model X
- All three models are equally attractive
- Cant decide since IRR is not the recommended method for this analysis
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Urban Infrastructure Finance And Management
Authors: K. Wellman, Marcus Spiller
1st Edition
0470672188, 978-0470672181
