Question

0.9. The migration of Asian carp into the Great Lakes must be stopped. Two mutually exclusive alternatives with different operational lifespan have been proposed to keep the carp from travelling further north: Fish Nets 1,250,000 Electric Barrier $2,000,000 Initial investment, $ Annual benefits less expenses. $ EOYI EOY 2 FOY 3 | ΕΟΥ 4 Useful life, years 500.000 800.000 400.000 1.200,000 1.100.000 500,000 100.000 If the MARR is 10%, which alternative should be chosen if it is specified that the internal rate-of- return method must be utilized?

Answer 1

Electric Barrier Method will be selected since its IRR is more and is also greater than the MARR of 10%.

Year	Fish nets	Electric Barrier
0	-1250000	-2000000
1	500000	1200000
2	800000	1100000
3	400000	500000
4		100000
IRR	17.58%	23.55%

Workings

AutoSave o 9.3HD Book1 - Excel Sign in - 0 X File Home Insert Draw Page Layout Formulas Data Review View Help Tell me what you want to do Share Comments A = = 0 £47 Z Calibri - 11 BIU - B Font -A A = E Insert - Delete - Format Paste La- - General 3$ -% Number . Conditional Format as Formatting Table - Cell Styles Sort & Find & Filter - Select - Editing Clipboard Alignment Styles Cells B2 н A Year Fish nets |-1250000 500000 800000 400000 Electric Barrier -2000000 1200000 1100000 500000 100000 =IRR(C2:C6) =IRR(D2:06) Sheet1 Sheet2 Sheet3 Sheet4 Sheets Sheet6 Sheet7 Sheet8 Sheet9 Ready E + 100% -- - ENG 2:33 PM 24 O