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.
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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.