8. By taking n as 30years and using 6% both as MARR and discount rate, compare thebelow three possible alternatives by using NPV (net present value) and IRR methods,and recommend the best possible alternative.AlternativesAlternative ATypes of cashflowsAlternative CInitial capitalAnnual operation and ETB 40,000maintenance costAlternative BЕTB 5,000,000 | ЕТB 7,000,00о |ЕTB 11,000,00ЕТВ 100,000ЕТВ 150,000Annual benefitЕТB 560,000ЕТВ 800,000ETB 1,050,000

Capital budgeting indicates the evaluation of the profitability of possible investments and projects…

8. By taking n as 30years and using 6% both as MARR and discount rate, compare the below three possible alternatives by using NPV (net present value) and IRR methods, and recommend the best possible alternative. Types of cashflows Alternatives Alternative A Alternative B ETB 5,000,000 ETB 7,000,000 ETB 11,000,000 ЕТВ 100,000 Alternative C Initial capital Annual operation and ETB 40,000 |ЕTB 150,000 maintenance cost Annual benefit ETB 560,000 ЕТВ 800,000 ЕТВ 1,050,000

8. By taking n as 30years and using 6% both as MARR and discount rate, compare the below three possible alternatives by using NPV (net present value) and IRR methods, and recommend the best possible alternative. Types of cashflows Alternatives Alternative A Alternative B ETB 5,000,000 ETB 7,000,000 ETB 11,000,000 ЕТВ 100,000 Alternative C Initial capital Annual operation and ETB 40,000 |ЕTB 150,000 maintenance cost Annual benefit ETB 560,000 ЕТВ 800,000 ЕТВ 1,050,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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