EVALUATION o Given the following mutually-exclusive alternatives and a Minimum Attractive Rate of Return (MARR) of 7%, which should be chosen? o Solve as PV, FV and AW (3 separate analyses for each Design) and show which Design gets chosen in each. SHOW YOUR WORK (including cash flow diagram) with tool formulas, not tables at this time to ensure you're understanding the concepts. Year 012 3 4 5 Total Design A ($2500) $0 $0 $0 $0 $3100 $600 Design B ($2700) $650 $650 $650 $650 $700 $600 Design C ($3000) $250 $500 $750 $1000 $1250 $750

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
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EVALUATION
o Given the following mutually-exclusive alternatives and a
Minimum Attractive Rate of Return (MARR) of 7%,
which should be chosen?
o Solve as PV, FV and AW (3 separate analyses for each
Design) and show which Design gets chosen in each.
SHOW YOUR WORK (including cash flow diagram) with
tool formulas, not tables at this time to ensure you're
understanding the concepts.
Year
0
1
23
4
5
Total
Design A
($2500)
$0
$0
$0
$0
$3100
$600
Design B
($2700)
$650
$650
$650
$650
$700
$600
Design C
($3000)
$250
$500
$750
$1000
$1250
$750
Transcribed Image Text:EVALUATION o Given the following mutually-exclusive alternatives and a Minimum Attractive Rate of Return (MARR) of 7%, which should be chosen? o Solve as PV, FV and AW (3 separate analyses for each Design) and show which Design gets chosen in each. SHOW YOUR WORK (including cash flow diagram) with tool formulas, not tables at this time to ensure you're understanding the concepts. Year 0 1 23 4 5 Total Design A ($2500) $0 $0 $0 $0 $3100 $600 Design B ($2700) $650 $650 $650 $650 $700 $600 Design C ($3000) $250 $500 $750 $1000 $1250 $750
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