Which alternative should be recommended

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Reference no: EM131313050

Xanadu Mining is considering three mutually exclusive alternatives, as shown in the table below. MARR is 7.5 % year.

EOY A001 B002 C003

0   -$230   -$110   -$164

1 $100 $60 $86

2 $110 $60 $86

3 $120   $60 $86

4 $130   $70 $86

What is the present worth of each alternative?

Alternative A001:

Alternative B002:

Alternative C003:

Which alternative should be recommended?

Reference no: EM131313050

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