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  3. the estimated negative cash flows for three design

The estimated negative cash flows for three design alternatives are shown below. The MARR is...

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The estimated negative cash flows for three design alternatives are shown below. The MARR is 14% per year and the study period is seven years. Which alternative is best based on the IRR method? Doing nothing is not an option Alternative EOY Capital investment Annual expenses S86,200 7,500 $65,000 12,220 $72,400 10,320 Which alternative would you choose as a base one? Choose the correct answer below OA. Alternative A B. Alternative C c, Alternative B Analyze the difference between the base alternative and the second-choice alternative IRR ( C -B ) Analyze the difference between the current base alternative and the third-choice alternative IRR (A -C ')- %. (Round to two decimal places.) Which alternative should be selected? Choose the correct answer below 0 A. Alternative A %. (Round to two decimal places.) OB. Alternative B C Alternative C

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