Consider four mutually exclusive alternatives, each having an 8-year
useful life: If the minimum attractive rate of return is 8%, which
alternative should be selected (use IRR incremental)?
A B C D
First cost $1500 $100 $900 $500
Annual Benefit $122 $120 $97 $122
Salvage value $750 $500 $500
For A:
B:
C:
D:
Answer: A
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