Six sites have been identified for a parking lot in downtown Blacksburg BecHUse the sites aro plots of land, their salvege vialue and invostment cost are identical. A 10-year study poriod has been specified, and the MARR is 17% per year Which site should bo chosen based on the IRR criteion? E Click the icon to view the alternatives description Which alternative would you choose as a base one? Choose the correct answer below O A. Alternative D OB. Alternative E OC. Alternative C OD. Alternalive F OE. Alternative A OF. Allerrative B

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Six sites have been identified for a parking lot in downtown Blacksburg BecHuse the sites are plots of land, thein salvege value and investment cost are identical. A 10-year study period has been specified, and the MARR is 17% per year Which site should be
chosen based on the IRR criletion?
E Click the icon to view the alternatives description
Which alternative would you choose as a base one? Choose the cOrrect answer below.
O A. Alternative D
O B. Alternative E
OC. Alternative C
O D. Alterralive F
OE. Alternative A
OF. Allerrnative B
Transcribed Image Text:Six sites have been identified for a parking lot in downtown Blacksburg BecHuse the sites are plots of land, thein salvege value and investment cost are identical. A 10-year study period has been specified, and the MARR is 17% per year Which site should be chosen based on the IRR criletion? E Click the icon to view the alternatives description Which alternative would you choose as a base one? Choose the cOrrect answer below. O A. Alternative D O B. Alternative E OC. Alternative C O D. Alterralive F OE. Alternative A OF. Allerrnative B
R Choose the correct answer below
More Info
Investment cost
$120
$170
$270
$420
$540
$720
(thousands)
Annual revenue
minus expense
(thousands)
$17
$44.5
$57
$89 5
Si11.5
$145.5
IRR on total
14.2%
26 2%
21.1%
21.3%
20.6%
20.2%
investment
Print
Done
Check Answer.
Transcribed Image Text:R Choose the correct answer below More Info Investment cost $120 $170 $270 $420 $540 $720 (thousands) Annual revenue minus expense (thousands) $17 $44.5 $57 $89 5 Si11.5 $145.5 IRR on total 14.2% 26 2% 21.1% 21.3% 20.6% 20.2% investment Print Done Check Answer.
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