Purchase Solution

IRR or Present Worth

Not what you're looking for?

Ask Custom Question

6. Three mutually exclusive alternatives requiring different investment levels are being considered. The life of all three is 20 years with no salvage value. The MARR is 15%.
Al A2 A3
Investment $ 60,000 $ 30,000 $ 100,000
Cash flow per year $ 10,692 $ 6,162 $ 17,000
Return on total inv. 17.1% 20.0% 16.1%

Find the alternative that should be selected using IRR or Present Worth on the incremental investment. (One or the other, your choice.)

Purchase this Solution

Solution Summary

IRR or Present Worth is applied.

Purchase this Solution


Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.