Question: Using the data from Problem, create a spreadsheet to identify the best design using an IRR analysis.
Problem: Three mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given next. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold.
A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method.