Given four feasible alternatives: A, B, C, and D with the information below: IRRA(B-A) A(E = 11%, IRRA(C-A) = 10.5%, IRR If the MARR=12%, rank the above alternatives from
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- Four mutually exclusive alternotives are compared and their internal rate of return (IRR) values are as follows: A = 11.2%; B= 12.3%; C- 13.1%; and D= 128%. Which alternative(s) must be selected it MARR = 11%P O a All aiternatives b. Alternotives Cand D C. None of the alternatives d. Alternative C O e. Insutficient information to decideChoices for the last requirement, "determine the approximate internal rate of return from the choicies (pick the closest answer. a. 29% b. 20% c. 26% d. 22%Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12% per year. Annual benefits to the public have been estimated by an advisory committee and are shown below. Use the IRR method to select the best jogging track. Alternative A в Initial Cost $62,000 $52,000 $150,000 $55,000 Annual benefits $10,000 $8,000 $20,000 $9,000 IRR 16.1% 15.4% Blank 1 Blank 2 Do not put comma limit your answer to one decimal place. Ex: 1234.5% Blank 1 Add your answer Blank 2 Add your answer
- You are given the following data about Asset A and Asset B. Asset A Asset B Expected returns 8.6% 7.9% Standard Deviation 3.8% 4.6% Assuming that an investor is to choose between Asset A or Asset B, explain which asset a rational investor will choose. c) With the use of a diagram, explain why an investor will always choose a point on the SML line.Four mutually exclusive alternatives are evaluated using three estimates or strategies (pessimistic, most likely, and optimistic) for several parameters.The resulting PW values over the LCM are determined as shown. The best alternative to select under the stated condition is:a. pessimistic: select alternative 2b. optimistic: select alternative 2c. pessimistic: select alternative 1d. optimistic: select alternative 4The two mutually exclusive alternatives shown in the table are available (“do nothing” is also an option). If the MARR = 15% select the better alternativewith an incremental analysis using the IRR method. Given: IRRA = 24.7% and IRRB = 16.6%. State your assumptions.
- Two projects, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) > PW(B). If MARR is changed to (i + 1)%, what will be the relationship between PW(A) and PW(B)? a. PW(A) > PW(B) b. PW(A) = PW(B) c. PW(A) < PW(B) d. Cannot be determined without the cash flow profiles.If the B/C ratio for three alternatives A, B, and Care 2.8, 3.3 and 1.95 respectively, the best alternative is always "B" as it has the largest B/C ratio. O True FalseRead the question carefully and give me right solution according to the question. IRR =17.3%
- Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable Successful Alternative 1 Alternative 2 Outcomes Probability Outcomes Probability 50 0.20 90 0.20 80 185 0.40 120 205 0.40 Alternative 1 Alternative 2 Alternative 3 Coefficient of Variation 0.40 0.40 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Rank Alternative 3 Outcomes Probability 8.20 0.60 0.20 65 320 420Alternatives A C D E alternatives have the following returns and standard deviations of returns. Alternatives A B C D E Returns: Expected Value $ 1,460 1,370 10,300 1,180 67,600 Coefficient of Variation Standard Deviation Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of variation. (Round your answers to 3 decimal places.) Rank $ 780 1,490 9,100 1,060 21,500 1469 47 meldFind the numerical value of the factor (A/P, 30%,22).