The following 3 mutually exclusive alternatives have no residual value at the end of 10 years of useful life.

Alternatives A B C

Initial Cost $100,000 $130,000 $200,000

Flat annual benefit 26,380 38,780 47,480

6 points

a. Construct in Excel a present value table for each alternative using interest rates from 0 to 30%.

b. Plot in Excel the Present Value of each alternative on a common graph using the table constructed in part (a) of the problem.

c. Determine the specific interest rate at which the alternatives intersect. Submit the incremental internal rate of return analysis with which you obtained the intersection interest rates. Show result to 2 decimal places.

d. What is the goal of plotting present worth curves for all project alternatives? What is the purpose of building a select table?

and. Construct a selection table for the range of interest rates from 0% to 30%.

F. If the MARR is 25% which alternative should be chosen, if any.