6. Consider the following mutually exclusive project alternatives with expected lifetime of three years each n Alt A Alt

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6 Consider The Following Mutually Exclusive Project Alternatives With Expected Lifetime Of Three Years Each N Alt A Alt 1 (57.27 KiB) Viewed 29 times

6. Consider the following mutually exclusive project alternatives with expected lifetime of three years each n Alt A Alt B 0 $900 -$1000 1 -350 475 2 915 475 3 915 475 A:B-A - $100 825 -440 -440 (a) Find the PW of both alternatives at MARR = 12%. Are both of them favorable ) to the do-nothing alternative according to their PWs? (b) Find the IRR for alternatives A and B seperately. Are both of them favorable to the do-nothing alternative according to their IRR values? (C) Find the IRR for the difference cash flow. Which project is preferable according to the incremental IRR criterion?