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ABC Company is considering the purchase of a new forklift forits flourishing roofing business. The key parameters of the threeforklifts under scrutiny (Alpha, Beta and Gamma) are providedbelow.ParametersAlphaBetaGammaInitial Cost($)400,000500,000550,000Revenues ($)230,000 at EOY1Decreasing by 1% annually thereafter300,000 at EOY1 increasing by 1000 annually thereafter330,000 at EOY1 decreasing by 1500 annually thereafterOperating Costs ($)105,000 at EOY1 increasing by 2% annually thereafter214,000 annually223,000 at EOY1 increasing by 1000 annually thereafterEnd-of life salvage value-10,00010,00025,000Useful life (years)51010Industry Standard= 4 yearsMARR = 10%EOY = End of year21.i) The incremental External Rate of Return (?ERR) betweenAlpha and Gamma (second decimal; no rounding) is a) 9.40%; b)9.97%; c) 10.25%; d) 10.62%.ii) The incremental External Rate of Return (?ERR) between Betaand Gamma (second decimal; no rounding) is a) 8.19%; b) 9.30%; c)9.88%; d) 10.91%.