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The estimated negative cash flows for three design alternatives are shown below. The MARR is 12% per year and the study period is four years.

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The estimated negative cash flows for three design alternatives are shown below. The MARR is 12% per year and the study period is four years. Which alterative is best based on the IRR method? Doing nothing is not an option FOY A $80.100 Alternative B 565,000 C 572,400 0 Capital investment Annual expenses 1-4 7,800 12,950 10.250 Which alternative would you choose as a base one? Choose the correct answer below. O A. Alternative C OB. Alternative A O C. Alternative B Analyze the difference between the base alterative and the second-choice alternative IRR AO V)=%. (Round to two decimal places.) Analyze the difference between the current base alternative and the third-choice alterative IRRA W)=%. (Round to two decimal places.) Which alternative should be selected? Choose the correct answer below. O A. Alternative C OB. Alternative A O C. Alternative B

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