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  3. 1. given the following mutually exclusive alternat

1. Given the following mutually exclusive alternatives each with economic lives of 15 years, each...

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Accounting

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1. Given the following mutually exclusive alternatives each with economic lives of 15 years, each evaluated over a 15-year study period. MARR is 20%; Project Initial Cost Annual Benefit $10,000 Annual Cost IRR $20,000 $16,000 $7,800 2,800 30.69% $18,000 $10,000 $5,000 27.01% $12,000 $5,000 $2,250 21.71% $5,000 24.017% a. Are all these alternatives acceptable? Why are why not, be specific. b. Using the Incremental Investment Analysis Procedure evaluate the incremental values of cash flows using incremental PW at MARR as a proxy for incremental IRR. Show your cash flow diagrams for each incremental analysis. Which project would you recommend? Why, be specific. c. Calculate the PW(MARR) for all four projects. Based on your PW calculations, is your project selection the same as you choose in part b

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