Can you compute the PW of alternative A, the AW of alternative B, the FW of Alternative C, and the PW of alternative D? Also for a MARR of 12%, rank the MEAs from most profitable to least profitable. HINT: You will need to perform additional calculations before answering this question.

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Can you compute the PW of alternative A, the AW of alternative B, the FW of Alternative C, and the PW of alternative D? Also for a MARR of 12%, rank the MEAs from most profitable to least profitable. HINT: You will need to perform additional calculations before answering this question.
Alternatives
A
B
C
Ꭰ
Capital investment
$150,000
$85,000
$75,000
$120,000
Annual revenues
$28,000
$16,000
$15,000
$22,000
Annual expenses
$1,000
$550
$500
$700
Market Value (EOY 10)
$20,000
$10,000
$6,000
$11,000
Life (years)
IRR
10
10
10
10
13.4%
13.5%
14.8%
12.8%
The MARR = 12% per year. Use this information to answer the following questions.
Transcribed Image Text:Alternatives A B C Ꭰ Capital investment $150,000 $85,000 $75,000 $120,000 Annual revenues $28,000 $16,000 $15,000 $22,000 Annual expenses $1,000 $550 $500 $700 Market Value (EOY 10) $20,000 $10,000 $6,000 $11,000 Life (years) IRR 10 10 10 10 13.4% 13.5% 14.8% 12.8% The MARR = 12% per year. Use this information to answer the following questions.
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