The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment (study) period is four years, and MARR is 12% per year. Data for the fixture costs of the systems are shown in the table below. Plot the AW of each alternative against MARR as the MARR varies across this range: 4%, 8%, 12%, 16%, and 20%. What can you generalize about the range of the MARR for which each alternative is preferred?

Plot the AW of each alternative against MARR as the MARR varies across this range: 4%, 8%, 12%, 16%, and 20%.

Use the line drawing tool to plot the lines that represent the AW value for each alternative. Be sure to properly label your lines.

3000- 2500- 2000- 1500- AW, $ 1000 500- 0 8 12 16 20 24 28 -500 -1000- MARR What can you generalize about the range of the MARR for which each alternative is preferred? For what range of the MARR the alternative A is preferred? Consider only the values of MARR greater than 4%. Choose the correct answer below. A. MARR 11.8% O E. No values of MARR Capital investment Annual savings MV (after 4 years) IRR A $12,000 $4,000 $3,000 19.2% Alternatives B $15,800 $5.200 $3.500 1896 $8,000 $3.000 $1.500 23.296