Consider four mutually exclusive alternatives for an investment. ...
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Accounting
Consider four mutually exclusive alternatives for an investment.
A
B
C
D
Initial Cost
$3000
$1950
$5000
$3750
Uniform Annual Benefit
$1447
$959
$1700
$1651
Uniform Annual Costs
$145
$95
$189
$150
Life
4
4
4
4
Salvage
10% of first cost
Use a Rate of Return Analysis and Excel to solve for the following:
Which alternative should be chosen using an MARR of 7%? Mathematical solution (5 points)
Create a choice table from 0 20%. (5 points)
Create a graphical solution to the problem indicating which alternative should be chosen for interest rates from 0 20%. (5 points). Make sure your graph has all proper labels.
There are no variables for this problem.
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