Three mutually exclusive alternatives requiring different investment levels are being considered. The life of all three is 20 years with no salvage value. The MARR is 15%.
Al A2 A3
Investment $60,000 $30,000 $100,000
Cash flow per year $10,692 $6,162 $17,000
Return on total inv. 17.1% 20.0% 16.1%
Find the alternative that should be selected using IRR or Present Worth on the incremental investment. (One or the other, your choice.)