Question
please just solve the rate of return analysis, I'm confused on that part Rate of Return Problem Consider three mutually exclusive alternatives for an investment.
please just solve the rate of return analysis, I'm confused on that part
Rate of Return Problem
Consider three mutually exclusive alternatives for an investment.
A | B | C | D | |
Initial Cost | $100,000 | $130,000 | $200,000 | $330,000 |
Uniform Annual Benefit | $31,520 | $38,780 | $47,480 | $99,879 |
Uniform Annual Costs | 8% of First Cost | |||
Life | 5 | 5 | 5 | 5 |
Salvage | 10% of first cost |
Use a Rate of Return Analysis and Excel to solve for the following:
Which alternative should be chosen using an MARR of 6%?
o Using a Mathematical Rate of Return Solution (5 points)
o Using a graphical solution to the problem indicating which alternative should be chosen for interest rates from 0 20%. (5 points). Make sure your graph has all proper labels.
Create a choice table from 0 20%. (5 points)
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