Which alternative in the table below should be selected when the MRR = 6% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost A(A-DN) $800 $154 14.1% The IRR on A(C-B) is % (Round to one decimal place.) A(B-A) $700 $114 10.0% A(C-B) $1,100 $170 ? A(D-C) $1,300 $130 ?

Which alternative in the table below should be selected when the MRR = 6% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost A(A-DN) $800 $154 14.1% The IRR on A(C-B) is % (Round to one decimal place.) A(B-A) $700 $114 10.0% A(C-B) $1,100 $170 ? A(D-C) $1,300 $130 ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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