Given the cash flows and information in the table below. Which alternative do you choose (mutually exclusive)? 4 MARR Life (years) Initial Cost CF, years 1-4 PWB B/C 6.5% 4 A B 13,500 11,500 4100 $14,046 1.04 A-D 0.95 C-A 1.22 C 15,000 3600 4635 $12,333 1.07 B-D 1.00 C-B 1.01 $15,879 1.06 C-D 1.00 D-B 1.00 D 7200 2350 $8,051 1.12 B-A 0.86 A-B 0.86

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Given the cash flows and information in the table below. Which alternative do you
choose (mutually exclusive)?
MARR
Life (years)
Initial Cost
CF, years 1-4
PWB
B/C
6.5%
4
A
13,500
4100
$14,046
1.04
A-D
0.95
C-A
1.22
B
11,500
3600
$12,333
1.07
B-D
1.00
C-B
1.01
C
15,000
4635
$15,879
1.06
C-D
1.00
D-B
1.00
D
7200
2350
$8,051
1.12
B-A
0.86
A-B
0.86
4
Transcribed Image Text:Given the cash flows and information in the table below. Which alternative do you choose (mutually exclusive)? MARR Life (years) Initial Cost CF, years 1-4 PWB B/C 6.5% 4 A 13,500 4100 $14,046 1.04 A-D 0.95 C-A 1.22 B 11,500 3600 $12,333 1.07 B-D 1.00 C-B 1.01 C 15,000 4635 $15,879 1.06 C-D 1.00 D-B 1.00 D 7200 2350 $8,051 1.12 B-A 0.86 A-B 0.86 4
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