The best estimates for two investment opportunities are as follows:

a) Show the sensitivity of the annual equivalent worth of the cash flow to MARR by plotting AE (y-axis) against MARR of 8%, 10%, 12%, and 14% (x-axis). Decide which alternative is more desirable.

b) If MARR is 12%, show the sensitivity of the annual equivalent worth of the cash flow to estimated life values by plotting AE (y-axis) against estimated life of 4, 8, 12 years (x-axis). Decide which alternative is more desirable. Assume the salvage values and annual operating costs are the same for each life value.

c) Compute the break-even value of estimated life for two investments.

dont use excel

Initial investment Net annual return Salvage value Estimated life MARR Alternative 1 Alternative 2 $119000 $64,000 $34,000 $25,000 $22,000 $5,000 8 years 4 years 12% 12% Initial investment Net annual return Salvage value Estimated life MARR Alternative 1 Alternative 2 $119000 $64,000 $34,000 $25,000 $22,000 $5,000 8 years 4 years 12% 12%