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Explain Evaluation of three mutually exclusive projects

Three (3) mutually exclusive projects are being considered-

Item 

A

B

C

First Cost

1,000

2,000

3,000

Uniform Annual Benefits

150

150

0

Salvage Value

1,000

2,700

5,600

Useful Life

5 years

6 years

7 years

MARR

8%

8%

8%

Assume that when each project reached the end of its useful life, it was sold for the salvage value, without replacement.

Construct a choice table from 0% to 100%. Which project should be selected?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9163554

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