Four alternative designs are being considered for a pet-exercising treadmillI. The company's MARR is 18%. The cash flows associated with each are givenin the following table.The JudasThe LancelotThe BellaThe Lilo$120,000$50,000$130,000$141,000$50,000$13,000$18,000Capital Investment$160,000Annual RevenuesAnnual Expenses$50,000$50,000$20,000$15,000$14,000$15,000$15,000Refurbish at EOY 5$23,000$4,000$23,000$4,000Market Value after 10 years$5,000IRR???21.8%21.6%17.7% Which of the FOUR designs do you recommend? In your supporting work, include the additional calculations you need to make this decision. Also, explainthe reasoning for your decision.O The JudasO The LancelotThe BellaO The Lilo

To determine which of the 4 designs has to be selected let us compare all the IRRs.

Answered: Which of the FOUR designs do you…

Which of the FOUR designs do you recommend? In your supporting work, include the additional calculations you need to make this decision. Also, expl the reasoning for your decision.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 18EA: Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and...

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