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Suppose the MARR is 5%. Use the following table to answer the question--Which option should be...

  1. Suppose the MARR is 5%. Use the following table to answer the question--Which option should be selected as the base alternative?

    CMS FMS
    Initial Investment $31,000 $38,000
    Annual Revenue 6,688 9,102
    Useful Life (Years) 5 5
    A.

    CMS
    B.

    I'm completely lost!
    C.

    Neither option is acceptable as a base alternative.
    D.

    FMS
    E.

    Both options are acceptable base alternatives.

  1. Suppose the MARR is 3%. Use the following table to answer the question--Which option should be selected as the challenger alternative?

    CMS FMS
    Initial Investment $30,000 $39,000
    Annual Revenue 6,688 9,102
    Useful Life (Years) 5 5
    A.

    FMS
    B.

    I'm completely lost.
    C.

    Both options are acceptable challenger alternatives
    D.

    Neither option is acceptable as a challenger alternative.
    E.

    CMS
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