Which of the above should be chosen?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 19PROB
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4- A firm is considering three mutually exclusive alternatives as part of a
production improvement program. The alternatives are:
Alternative
A (i=12%)
B (i=10%)
C (i=15%)
Installation Cost (U)
200,000
30,750
270,000
190,000
30,250
Uniform Annual
40,500
Benefit (U)
Useful life in years
12
14
15
Which of the above should be chosen?
Transcribed Image Text:4- A firm is considering three mutually exclusive alternatives as part of a production improvement program. The alternatives are: Alternative A (i=12%) B (i=10%) C (i=15%) Installation Cost (U) 200,000 30,750 270,000 190,000 30,250 Uniform Annual 40,500 Benefit (U) Useful life in years 12 14 15 Which of the above should be chosen?
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