Question
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:
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
Uniform Anual Benefit: $26,380 $38,780 $47,480
a. Construct in Excel a present value table for each alternative using interest rates from 0 to 30%. (PLEASE SHOW FORMULA USED IN EXCEL TO GET RESULTS.)
b. Plot in Excel the Present Value of each alternative in a common graph using the table built in part a of the problem.
c. Determine the specific interest rate at which alternatives C and B intersect. 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?
e. Construct a selection table for the range of interest rates from 0% to 100%.
f. If the MARR is 25% which alternative should be chosen, if any.
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