Question: Refer to Problem. Suppose the study period has been coterminated at 10 years. Use the imputed market value technique and determine which alternative is the most economical.
Problem: A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network.
At EOY 10, alternative III would be replaced with another alternative III having the same installed cost and net annual revenues. If MARR is 10% per year, which alternative (if any) should be chosen? Use the incremental IRR procedure.