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(Show work, please!) A business is evaluating two alternative, mutually exclusive methods for a deli bar to be added to their stores. It has developed

(Show work, please!)

A business is evaluating two alternative, mutually exclusive methods for a deli bar to be added to their stores. It has developed the following estimated after- tax cost savings for each alternative method. The project discount, and reinvestment, rate is 11%.

To T1 T2 T3
A: Staffed Deli (35,500) 23,000 26,200 31,200
B: Self Serve Deli (27,500) 19,700 21,300 23,500

a. Which method (staffed or self serve) would you recommend using an NPV approach?

b. Which method would you recommend using the MIRR #3 Approach?

c. Which method do you recommend? Explain fully.

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