Three mutually exclusive investment alternatives are being considered. The estimated cash flows for each alternative are given below. The study period 30 years and the firm's MARR is 15% per year. Assume repeatability and reinvestment of positive cash balances at 15% per year. a. What is the simple payback period for Alternative 1? b. What is the annual worth of Alternative 2? c. What is the IRR of the incremental cash flows of Alternative 2 compared to Alternative 1? d. Which alternative should be selected? Click the icon to view the datatable for the additional information about the alternatives. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 15% per year. a. The simple payback period for Alternative 1 is years. (Round up to the nearest whole number.) Discrete Compounding; i = 15% Uniform Series Single Payment Capital Investment Annual Costs Annual Revenues Market Value at End of Useful Life Useful Life IRR Alt. 1 - $30,000 - $19,000 $27,000 10,000 5 years 17.2% Alt. 2 - $70,000 -$34,000 $57,500 10,000 Alt. 3 - $40,000 - $25,000 $38,000 10,000 6 years 26.0% Present Worth Factor To Find P Given A PIA 5 years 22.6% N 1 2 3 Print Compound Amount Present Factor Worth Factor To Find F To Find P Given P Given F F/P P/F 1.1500 0.8696 1.3225 0.7561 1.5209 0.6575 1.7490 0.5718 2.0114 0.4972 2.3131 0.4323 2.6600 0.3759 3.0590 0.3269 3.5179 0.2843 4.0456 0.2472 Done Compound Amount Factor To Find F Given A FIA 1.0000 2.1500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7268 16.7858 20.3037 Uniform Gradient Gradient Gradient Uniform Present Series Worth Factor Factor To Find P To Find A Given G Given G P/G AG 0.0000 0.0000 0.7561 0.4651 2.0712 0.9071 3.7864 1.3263 5.7751 1.7228 7.9368 2.0972 10.1924 2.4498 12.4807 2.7813 14.7548 3.0922 16.9795 3.3832 Sinking Fund Factor To Find A Given F A/F 1.0000 0.4651 0.2880 0.2003 0.1483 0.1142 0.0904 0.0729 0.0596 0.0493 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 Capital Recovery Factor To Find A Given P A/P 1.1500 0.6151 0.4380 0.3503 0.2983 0.2642 0.2404 0.2229 0.2096 0.1993 LO 6 7 8 9 10