Using (incremental) benefit-cost ratio analysis OR (incremental) internal rate of return, letermine which of the following three mutually exclusive alternatives should be selected. Each lternative has a 6-year useful life. Assume the MARR is 6%. First Cost Uniform Annual Benefit Salvage Value $560 $140 $40 A $340 $100 0 B $125 $40 0 C

The following information is for five mutually exclusive alternatives that have 20-year useful lives. The decision maker may choose any one of the options or reject them all. Prepare a choice table.

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Alternative A B C which to choose.

solve, dont use excel. dont write the answer in a paper becuse of the handwriting. thanks

Question No. r The following information is provided for five mutually exclusive alternatives that have 20-year useful lives. If the minimum attractive rate of return is 6%, which alternative should be selected using IROR Method? Alternatives B Cost 4,000 2,000 6,000 1,000 9,000 Uniform Annual Benefit 639 410 761 117 785 IROR 15% 20% 11% 10% 6% IROR (B-D) IROR (A-D) IROR (A-B) IROR (C-B) IROR (C-A) IROR (E-C) IROR (E-A) -5% 29% 18% 10% 9% 2% 14%

Solve it correctly please. I will rate accordingly.

Problem 2. Based on benefit to cost ratio, determine which project should be chosen. Please work out in excel spreadsheet.

At 10% interest, what is the nearest benefit/cost ratio for the following private sector project: Initial Cost 200,000 Additional costs at the EoY 1-2 30.000 Annual Benefits at the EoY 1-10 90,000 Salvage Value 40,000 Project Life 10 Note: Consider the following equation setup: FW(Bene fits) = Annual Bene fits (F/A, 10%, 10) FW(Costs) = Instial Costs + Additional Costs - (F/A, 10%, 2) (F/P, 10%, 8)- Salvage Value %3D 10% Compound Interest Factors F/P P/F A/F A/P F/A P/A 1 1.100 0.9091 1.0000 1.1000 1.000 0.909 2 1.210 0.8264 0.4762 0.5762 2.100 1.736 3 1.331 0.7513 0.3021 0.4021 3.310 2.487 4. 1.464 0.6830 0.2155 0.3155 4.641 3.170 1.611 0.6209 0.1638 0.2638 6.105 3.791 9. 1.772 0.5645 0.1296 0.2296 7.716 4.355 1.949 0.5132 0.1054 0.2054 9.487 4.868 8. 2.144 0.4665 0.0874 0.1874 11.436 5.335 6. 2.358 0.4241 0.0736 0.1736 13.580 5.759 10 2.594 0.3855 0.0627 0.1627 15.937 6.145 11 2.853 0.3505 0.0540 0.1540 18.531 6.495 12 3.138 0.3186 0.0468 0.1468 21.384 6.814 13 3.452 0.2897 0.0408…