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Business, 04.04.2020 06:09 alexkrol10

Three mutually exclusive investment alternatives are being considered. The estimated cash flows for each alternative are given below. The study period is 30 years and the firm's MARR is 10% per year. Assume repeatability and reinvestment of positive cash balances at 10% per year. a. What is the simple payback period for Alternative 1?
b. What is the annual worth of Alternative 2?
c. What is the IRR of the incremental cash flows of Alternative 2 compared to Alternative 1?
d. Which alternative should be selected?

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