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problem 1 incremental analysis rates of return Problem 1 Company X want to Inves

ID: 2759682 • Letter: P

Question


problem 1 incremental analysis rates of return

Problem 1 Company X want to Invest to project A. B or C (the company can only invest in one project (A. B or C) or the company can choose not invest to any praject (DN (do nothing)). Based on the incremental analyszs rnes of return shown below. what alternati e should company X choose (MARR-10%)? ComparisonIRR A DN B-DN 13% Problem 2 You need a commute cus. You luave thuree optious shown in the followng table, using smual worth saalysis what is the Annual Worth (AW) Cost of Each Option MARR-8% 2003 Sub2006 Accord

Explanation / Answer

The Company X should choose Project C since when we compare it to A it offers IRR of 13% which is higher than MARR of 10%.