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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? (Choose the one best answer from the choices given below.)

a.

Do nothing

b.

Alternative A

c.

Alternative B

d.

Alternative C

e.

Alternative D

f.

Alternative E

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