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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