What is the simple payback period for each alternative

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Reference no: EM13885639

Consider the following two mutually exclusive alternatives for reclaiming a deterioring inner-city neighborhood (one of them must be chosen). Notice that the IRR for both alternatives is 27.18%

a) If MARR is 18% per year, which alternative is better?

b) What is the IRR on the incremental cash flow [i.e., delta(Y-X)]?

c) If the MARR is 27.4% per year, Which alternative is better?

d) What is the simple payback period for each alternative?

e) Which alternative would you recommend?

Reference no: EM13885639

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