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The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. B. C D E Capital investment
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. B. C D E Capital investment Annual expenses Annual revenues Market value at EOY 10 IRR $35,000 $90,000 30,000 40,000 50,000 52,000 10,000 15,000 ??? 7.4% $45,000 $30,000 25,000 15,000 38,000 29,000 10,000 11,000 26.7% 46.0% $70,000 35,000 45,000 15,000 9.2% After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of the following? Assume the MARR = 46.0%. Doing nothing is not an option. Choose the correct answer below. O A. D + A OB. AD o O C. E + A O D. CE O E. D C
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