Question: Bell was in the process of purchasing new equiptment. The ownership considered three alternatives. Each provide same service over their useful lives, and MARR is 10%. Can assume repeatability. What is the calculated valie for the '"best" alternative?

ALT A.: initial investment: -$100,000; Net annual Revenues: $35,600; Market value: $24,000; Useful life: 4 years; IRR: 21.8%

ALT B.: initial investment: -$200,000; Net annual Revenues: $38,000; Market Value: $50,000; Useful life: 10 years; IRR: 8.5%

ALT C.: initial investment: -$150,000; Net annual Revenues: $34,000; Market value: $24,000; Useful life: 5 years; IRR: 8.5%