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Given the financial data for four mutually exclusive alternatives in the table below, A B C D First cost $18,000 $40,000 $21,200 45,000 O &M Cost/...

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Accounting

Given the financial data for four mutually exclusivealternatives in the table below,

A

B

C

D

First cost

$18,000

$40,000

$21,200

45,000

O &M Cost/ year

2,600

5,000

3,900

11,000

Benefit/year

7,500

16,000

11,500

25,000

Salvage value

2,000

6,000

6,000

12,000

Life in years

                              4

Use a Rate of Return Analysis to solve for the following:

  • Which alternative should be chosen using an MARR of 9%?Mathematical solution
  • Create a choice table from 0 – 25%.
  • Create a graphical solution to the problem indicating whichalternative should be chosen for interest rates from 0 – 20%. Makesure your graph has all proper labels including the appropriatechoices for the Rate of Returns shown in the graph. The graphshould be on its own page and notembedded.  

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