2. Compare the following alternatives, using (i) the Net Present Value method. The MARR is 13.32% annual nominal compounded quarterly. Alternative "X" Alternative "Y" Initital Investment $ 30,000 $25,500 Annual revenues 20,000 24,000 12,000 17,000 Annual expenses Salvage Value Useful life (years) 5,000 2,000 5 5

2. Compare the following alternatives, using (i) the Net Present Value method. The MARR is 13.32% annual nominal compounded quarterly. Alternative "X" Alternative "Y" Initital Investment $ 30,000 $25,500 Annual revenues 20,000 24,000 12,000 17,000 Annual expenses Salvage Value Useful life (years) 5,000 2,000 5 5

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 15PROB

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