For the Alternatives W,X,Y,Z and their present worth as shown in table, if these alternatives are independent, the one(s) that should be selected are: Alternative PW, S W - 6000 X -857 Y - 9780 Z -685 O X and Z O Only Y Only z O DN (do-nothing) O W and Y

Economics Aug 06, 2020

Expert Solution

The correct option is Do nothing. The present worth of all the alternatives are negative. This means the internal rate of return is negative. Negative internal rate of return will not attract any investors.

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