A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network.Installed cost$40,000$6,400$30,000$20,000Net annual revenue$5.650$5,250Salvage valueUseful life20 years20 years10 yearsCalculated IRR15.0%18.2%22.9%At EOY 10, alternative NI would be replaced with another alternative having the same installed cost and net annual revenues. If MARR is 10% per year, whichalternative (if any) should be chosen? Use the incremental IRR procedure.Arrange (rank order) the teasible alternatives to use the incremental IRR procedure (Hint DN indicates "do nothing" alternative). Choose the correct answer belowO A. I, I, I, DNO B. DN, I, N, NIOc. DN, ,N,O D. DN. .IPerform the incremental IRR Analysis. Fil-in the table below (Round to one decimal place)IncrementalAlternative to beInvestmentInc. IRRselected

Incremental IRR refers to an analysis of the return over investment done with an aim to Calculate…

A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. Installed cost $40,000 $6,400 $30,000 $5.650 $20 000 Net annual revenue $5,250 Salvage value Usetul ife 20 years 20 years 18.2% 10 years 22.9% Calculated IRR 15.0% AL EOY 10, allernative l would be replaced with another alternative N having the same installed cost and net annual revenues. II MARR is 10% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure. Arrange (rank order) the teasible alternatives to use the incremental IRR procedure (Hint DN indicates "do nothing" alternative) Choose the correct answer below O A. (N. NI, DN OB. DN, I. M. NI OC. DN, IN N I OD. DN. AI Pertam the ncremental RR Analysis. Filn the tabile below (Round to one decimal place) Alternative to be Investment Inc. IRR selected

A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network. Installed cost $40,000 $6,400 $30,000 $5.650 $20 000 Net annual revenue $5,250 Salvage value Usetul ife 20 years 20 years 18.2% 10 years 22.9% Calculated IRR 15.0% AL EOY 10, allernative l would be replaced with another alternative N having the same installed cost and net annual revenues. II MARR is 10% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure. Arrange (rank order) the teasible alternatives to use the incremental IRR procedure (Hint DN indicates "do nothing" alternative) Choose the correct answer below O A. (N. NI, DN OB. DN, I. M. NI OC. DN, IN N I OD. DN. AI Pertam the ncremental RR Analysis. Filn the tabile below (Round to one decimal place) Alternative to be Investment Inc. IRR selected

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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