3. The table below provides cash flows for two mutually exclusive alternatives for developing a "Pay for Recreation" facility being considered by a county government in New Mexico. If money can be borrowed issuing bonds at the rate of 17% per year, using the rate of return analysis, find the attractive alternative between the two given proposals. For this question, use the interpolation between 10% and 20% of interest rates. Year Alt. A Alt. B -20M -40M 1-20 4M 7M 21-40 3M 3M 41-00 2M 4M

3. The table below provides cash flows for two mutually exclusive alternatives for developing a "Pay for Recreation" facility being considered by a county government in New Mexico. If money can be borrowed issuing bonds at the rate of 17% per year, using the rate of return analysis, find the attractive alternative between the two given proposals. For this question, use the interpolation between 10% and 20% of interest rates. Year Alt. A Alt. B -20M -40M 1-20 4M 7M 21-40 3M 3M 41-00 2M 4M

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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