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This is the question of Engineering Economics. Full solution is required 5. We discussed a small investment project involving two alternatives, A and B. The

This is the question of Engineering Economics. Full solution is required

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5. We discussed a small investment project involving two alternatives, A and B. The cash flow for each alternative is restated here, as well as the cash flow (incremental) difference. Alternative Capital investment Annual saving Useful life A $60,000 $22,000 4 years B $73,000 $26,225 4 years Assume that there is no market value at the end of its useful life and the useful life of each alternative (and the study period) is four years. Also, assume that MARR = 10% per year. a. Find the present worth of each alternative. b. Find the internal rate of return of each alternative. c. Which alternative would you choose based on PW and based on IRR? d. Find the Incremental IRR

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