Bell was in the process of purchasing new equipment the


Bell was in the process of purchasing new equipment. 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%

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Financial Management: Bell was in the process of purchasing new equipment the
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