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Business, 12.03.2021 16:10 sophie5064

Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 18% per year. At the end of the useful life, the investment will be sold. A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. A B C
Investment cost $27,000 $56,000 $42,500
Annual expenses $15,000 $13,000 $23,000
Annual revenues $23,000 $30,000 $32,000
Market value $6,500 $7,500 $9,000
Useful life 10 years 10 years 10 years
IRR 27,6% 28,1% 17,8%

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