Homework Answers
10. CMS (as it has smaller investment value)
11. FMS (as it has higher investment value)
12. 17-18%
Formula used: =IRR(-29000,9102,9102,9102,9102,9102) = 17.18%
13. 20% - 21%
Formula used: = IRR(-20000,6688,6688,6688,6688,6688) = 20.03%
14. 10-11%
Formula used: =IRR(-9000, 2414,2414,2414,2414,2414) = 10.6%
Values are calculated by subtracting values of cash flow as FMS - CMS
15. CMS
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Questions 10-15 are based on the following information about two mutually exclusive investment alternatives. The MARR...
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives...
The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. A В C Capital investment Annual expenses $60,000 $90,000 $40,000 $30,000 $70,000 35,000 45,000 15,000 30,000 40,000 25,000 16,000 Annual revenues 50,000 52.000 38,000 28,000 Market value at EOY 10 15,000 10,000 10,000 39.0% 10,000 IRR ??? 7.4% 30.8% 9.2% After the base alternative has been identified, the first comparison to be made in an incremental analysis should be which of...
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engineering economy QUESTION 2 The following mutually exclusive investment alternatives have been presented to you A...
engineering economy
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engineering economy
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