For the following table, if the MARR is 10% per year and a useful life for each alternative of six years that equals the study period. The rank order of alternatives from least capital investment to greatest capital investment is Do nothing C Fill the table with the missing values. Do nothing ? (2) ? (4) A capital investment A annual revenues -15,000 -2000 -3000 4,000 900 460 A annual costs A market value A IRR Alternative chosen -1,000 6,000 -150 -100 -2,220 3,350 ? (5) (6) 12.7% 10.9% (1) (3)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 10E
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For the following table, if the MARR is 10% per year and a useful life for each alternative
of six years that equals the study period. The rank order of alternatives from least capital
investment to greatest capital investment is
Do nothing
Fill the table with the missing values.
> A
C
в
Do nothing
> A
? (2)
? (4)
A capital investment
A annual revenues
A annual costs
A market value
A IRR
-15,000
-2000
-3000
4,000
900
460
-150
-1,000
6,000
-100
-2,220
3,350
? (5)
(6)
12.7%
10.9%
Alternative chosen
(1)
(3)
1. write the alternative chosen
2. write the two alternatives compared
3. write the alternative chosen
4. write the two alternatives compared
5. what is IRR incremental (final answer)
6. write the alternative chosen
Transcribed Image Text:For the following table, if the MARR is 10% per year and a useful life for each alternative of six years that equals the study period. The rank order of alternatives from least capital investment to greatest capital investment is Do nothing Fill the table with the missing values. > A C в Do nothing > A ? (2) ? (4) A capital investment A annual revenues A annual costs A market value A IRR -15,000 -2000 -3000 4,000 900 460 -150 -1,000 6,000 -100 -2,220 3,350 ? (5) (6) 12.7% 10.9% Alternative chosen (1) (3) 1. write the alternative chosen 2. write the two alternatives compared 3. write the alternative chosen 4. write the two alternatives compared 5. what is IRR incremental (final answer) 6. write the alternative chosen
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