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Please show steps as well as formula used. Consider the following two investments A and B with the following sequences of cash flows If i
Please show steps as well as formula used.
Consider the following two investments A and B with the following sequences of cash flows If i = 10%, then PW for alternative A is close to $4870 $5875 $8902 $6001 If i = 20%, then PW for alternative A is close to ?$23, 087 $25, 689 $22, 8912 ?$20, 010 Based on the above questions (18) and (19), the IRR for alternative A is close to 12.5% 13.8% 15.9% 11.7% If i = 10%, then PW for alternative B is close to $27, 60: 3 $22, 730 $23, 704 $20, 986 If i = 20%, then PW for alternative B is close to ?$1859 $2869 ?$1973 ?$1925 Based on the above questions (21) and (22), the IRR for alternative B is close to 15.4% 17.8% 10.7% 19.3% If MARR is 15%, which alternative is acceptable? Alternative A Alternative B Reject both alternatives Both alternatives A&B are equally preferableStep by Step Solution
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