The cash flows of three mutually exclusive alternative as shown in table. the study period is five year and imputed market value should be used to adjust cash flow. the MARR 12%
| Alternative A | Alternative B | Alternative C | ||
| Cash out flow(Investment) | 98600 | 115000 | 81200 | |
| Annual Income | 19500 | 26000 | 17500 | |
| Salvage value | 4000 | 27000 | 6000 | |
| useful life | 9 year | 5 year | 7 Year |
Using External Rate of return method determine best alternative
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