. Consider the following two mutually exclusive projects: Project A Project B -$15,000 -$25,000 $5,000 $12,000 $8,000 n 10 1 12 3 PW (15%) ? $9,600 The firm's MARR is known to be 15%. Compute the PW (15%) for Project A. $0 $X $X 0. In question 9, compute the unknown cash flow X in years 2 and 3 for Project B. 1. In question 9, which project would you select?

. Consider the following two mutually exclusive projects: Project A Project B -$15,000 -$25,000 $5,000 $12,000 $8,000 n 10 1 12 3 PW (15%) ? $9,600 The firm's MARR is known to be 15%. Compute the PW (15%) for Project A. $0 $X $X 0. In question 9, compute the unknown cash flow X in years 2 and 3 for Project B. 1. In question 9, which project would you select?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following net cash flows relate to two projects: YEAR PROJECT A PROJECT B -72 NET CASH FLOWS (IN $1,000) Prefer A 0 1 2 3 -60 20 Prefer B 4 5 6 20 20 20 20 20 22 20 13 13 13 45 Which of the two projects would you prefer if they are mutually exclusive, given a 15% discount rate? Take both as they are above the MARR None would be good because they have a similar IRR.
Q2. Consider the cash flow given in the following table. What is the value of the missing cash flows, X, if the project's IRR is 10%? Year Net Cash Flow -$3,000 1 2 X 3 $1,000
Just Answer NPW for Proj A
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