Calculate the irr for each make a graph depicting the euaw


Question: You have three investment options:


Option 1 Option 2 Option 3
Initial Cost 400 1300 825
Uniform Annual Benefit 120 200 190
Useful Life in Years 6 12 8

You also have the option of not picking any of them.

a) Calculate the IRR for each.

b) Make a graph depicting the EUAW (Equivalent Uniform Annual Worth) for each option over the [0%,100%] domain.

c) Make a choice table to cover the range from 0% to 100% annual interest rate.

d) If the discount rate (MARR) your company is using is 8%, how confident would you be about your decision on choosing a certain option? How about for a discount rate of 12.5%?

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Finance Basics: Calculate the irr for each make a graph depicting the euaw
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