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The following four alternative investments are being compared al MARR of 12%6. Which investment is the most economical over the entire service Me? AIL A
The following four alternative investments are being compared al MARR of 12%6. Which investment is the most economical over the entire service Me? AIL A AIL B AIL H AIL S Service life (years) 10 10 10 Net PW $6-15,000 $533,000 $590,000 $485,000 IRR 13.4% 16.2% 15% 14.2% Disc payback period (yrs) 6 5 A. Alternative H because it has the shortest payback period O B. Alternative B because it has the highest IRR Q C. Alternative A because it has the highest net PW O D. Alternative S because it has the longest payback period
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