Which alternative in the table below should be selected when the MARR = 7% per year? The life of each alternative is 10 years. A(A - DN) $700 A(C-B) $1,100 Increment Considered A(B-A) A(D-C) $1,600 A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost $600 $155 $126 $165 $160 17.9% 16.4% ... The IRR on A(C-B) is %. (Round to one decimal place.)

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
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Which alternative in the table below should be selected when the MARR = 7% per year? The life of each alternative is 10 years.
Increment Considered
A(A - DN)
A(B-A)
A(C-B)
A(D-C)
A Investment cost
A (Annual Revenues less
Costs)
$700
$600
$1,100
$1,600
$155
$126
$165
$160
IRR on A Investment Cost
17.9%
16.4%
?
.....
The IRR on A(C-B) is %. (Round to one decimal place.)
Transcribed Image Text:Which alternative in the table below should be selected when the MARR = 7% per year? The life of each alternative is 10 years. Increment Considered A(A - DN) A(B-A) A(C-B) A(D-C) A Investment cost A (Annual Revenues less Costs) $700 $600 $1,100 $1,600 $155 $126 $165 $160 IRR on A Investment Cost 17.9% 16.4% ? ..... The IRR on A(C-B) is %. (Round to one decimal place.)
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