Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years. Increment Considered A Investment cost A (Annual Revenues less Costs) IRR on A Investment Cost The IRR on A(C-B) is %. (Round to one decimal place.) A(A-DN) $900 $157 11.6% A(B-A) $500 $124 21.2% A(C-B) $1,200 $168 ? A(D-C) $1,700 $170 ?

Financial And Managerial Accounting
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Author:WARREN, Carl S.
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Chapter26: Capital Investment Analysis
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Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years.
Increment Considered
A(A-DN)
A Investment cost
$900
$157
A (Annual Revenues less
Costs)
IRR on A Investment Cost
The IRR on A(C-B) is%. (Round to one decimal place.)
11.6%
C
A(B-A)
$500
$124
21.2%
A(C-B)
$1,200
$168
?
A(D-C)
$1,700
$170
?
D
Transcribed Image Text:Which alternative in the table below should be selected when the MARR = 4% per year? The life of each alternative is 10 years. Increment Considered A(A-DN) A Investment cost $900 $157 A (Annual Revenues less Costs) IRR on A Investment Cost The IRR on A(C-B) is%. (Round to one decimal place.) 11.6% C A(B-A) $500 $124 21.2% A(C-B) $1,200 $168 ? A(D-C) $1,700 $170 ? D
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