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The estimated negative cash flows for three design alternatives are shown below. The MARR is 15% per year and the study period is four years.
The estimated negative cash flows for three design alternatives are shown below. The MARR is 15% per year and the study period is four years. Which alternative is best based on the IRR method? Doing nothing is not an option. Alamative EOY 0 $82,100 $65,000 $71,600 Capital Investment Annual expenses 1-4 8,500 14,470 12.120 Which alternative would you choose as a base ono? Choose the correct answer below. A Alternativo C OB. Alternative B O c. Alternative A Analyze the difference between the base alternative and the second-choice alternative. IRR A - =%. (Round to two decimal places.) Analyze the difference between the current base allemative and the third-choice alternativo. IRR A - - %. (Round to two decimal places.) Which alterative should be selected? Choose the correct answer below. O A. Alternative A OB. Alternative B OC. Alternative C
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