Please use factors. 09-11. The following cash flow estimates have been...
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Please use factors.
09-11. The following cash flow estimates have been developed for two small, mutually exclusive investment alternatives. The minimum attractive rate of return is 15% per year. End of Year> 4 750 1,200 Alternative1 $2,500 750 750 750 2,750 Alternative 2 $4,000 1,200 1,200 1,200 3,200 09. At which of the following IRR values on incremental investment would alternative 1 be a better choice? A) 12% B. 15% C. 1896 D. 28% E. 25% At which of the following IRR values on incremental investment would alternative 2 be a better choice? A. 18% 10. B.10% C. 1296 D. 5% E. 8% Based on the information provided which alternative, 1 or 2, should be selected? A. alternative 1 11. B. alternative 2 C. Neither D. Insufficient information A machine cost $50,000 on January 1, 2010, and $95,000 on January 1, 2015. The average inflation rate over the five years was 3% per year. What is the true percentage increase in the cost of the machine from 2010 to 2015? A. 52.63% 12. B. 47.37% C. 63.90% D. 3.00% E. 90.00%
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