The following three mutually exclusive alternatives have a 9-year life and no salvagevalue.C$400AInitial Cost$500$300Uniform annual benefit955080a) The firm wants a 9% rate of return. Which alternative should be selected?b) Construct a choice table for interest rates from 0% to 100%.

Following are the cash flow details of the three alternatives : Life = 9 years Alternative…

The following three mutually exclusive alternatives have a 9-year value. A C $400 $500 95 $300 50 Initial Cost Uniform annual benefit 80 a) The firm wants a 9% rate of return. Which alternative should be selected? anact rates from 0% to 100%.

The following three mutually exclusive alternatives have a 9-year value. A C $400 $500 95 $300 50 Initial Cost Uniform annual benefit 80 a) The firm wants a 9% rate of return. Which alternative should be selected? anact rates from 0% to 100%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The following three mutually exclusive alternatives have a 9-year life and no salvage
value.
C
$400
A
Initial Cost
$500
$300
Uniform annual benefit
95
50
80
a) The firm wants a 9% rate of return. Which alternative should be selected?
b) Construct a choice table for interest rates from 0% to 100%.

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