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Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below…
Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given below. The MARR is 20% per year. At the end of the useful life, the investment will be sold. A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. Investment cost $28,000 Annual expenses $16,000 $55,000 $40,000 $12,000 $21,000 $23,000 $30,000 $30,000 Annual revenues $8,500 $10,000 $6,500 Market value Useful life 10 years 10 years 10 years 19.5% 22.4% 30.8% IRR The Pw of alternative A is (Round to the nearest dollar