2. Three independent projects are available for funding by the DA-BAR. The following table shows the equivalent annual benefits and costs for each. Project 1 Annual benefits Annual Costs 1,800,000 5,600,000 6,600,000 2,000,000 4,200,000 5,400,000 2 3 Which project should be selected as best? What is the rank ordering of projects from best to worst?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
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2. Three independent projects are available for funding by the DA-BAR. The following table shows the
equivalent annual benefits and costs for each.
Annual benefits
1,800,000
5,600,000
6,600,000
Project
Annual Costs
2,000,000
4,200,000
5,400,000
1
Which project should be selected as best? What is the rank ordering of projects from best to worst?
Transcribed Image Text:2. Three independent projects are available for funding by the DA-BAR. The following table shows the equivalent annual benefits and costs for each. Annual benefits 1,800,000 5,600,000 6,600,000 Project Annual Costs 2,000,000 4,200,000 5,400,000 1 Which project should be selected as best? What is the rank ordering of projects from best to worst?
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