The following mutually exclusive investment alternatives have been presented to you. The life of all alternatives is 10 years. The IRR for Alternative A is most nearly equal to what value?
A B C D E
Capital investment $65,000 $90,000 $37,000 $30,000 $70,000
Annual expenses 30,000 40,000 25,000 16,000 35,000
Annual revenues 48,000 52,000 38,000 29,000 45,000
Market value at EOY 10 11,000 15,000 10,000 10,000 15,000
IRR ??? 7.4% 42.5% 9.2% 33.7%
Choose the correct answer below.
A. 10
B. 35
C. 15
D. 30
E. 25