Solve it clearly and correctly please. I will rate. A company must invest in one of two alternatives.Alternative AAlternative BInitial Cost$712,623$752,357Annual Saving$5,901$8,032$14,608Annual Costs$33,823Cost Increase (startingY2)$196$823Salvage$8,282$1,057MARR = 3.38% per compounding period%3DInvestment period = 11, compounded yearlyIf they perform an annual worth analysis, what is the value of the best alternative?

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Answered: A company must invest in one of two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Bawal Gumamit ng Excel( Don't use Excel) A small company purchased now for 1.15M will lose 75,000 each year for the first 4 years. An additional P400,000 invested in the company during the 4th year will result in a profit of 27,500 from the 5th year through the 15th year. At the end of 15 years, the company can be sold for 1.65M.a. Determine the IRR.b. Calculate FW if MARR is 12%/year.c. Calculate ERR ϵ = 12% per year.
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