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The following mutually exclusive investment alternatives have been presented to you. A B C D E Capital investment Annual expenses Annual revenues MV at EOY
The following mutually exclusive investment alternatives have been presented to you.
| A | B | C | D | E |
Capital investment Annual expenses Annual revenues MV at EOY 10 IRR | $60,000 $30,000 $50,000 $15,000 31.5 % | $90,000 $40,000 $52,000 $15,000 7.4 % | $40,000 $25,000 $38,000 $10,000 30.8 % | $30,000 $15,000 $28,000 $10,000 42.5 % | $70,000 $35,000 $45,000 $15,000 9.2 % |
The life span of all alternatives is 10 years. Using a MARR of 15 % per year, what is the preferred alternative?
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