4. Consider two investments with the following sequences of cash flows: Net Cash Flow n Project A 0 1 2 3 $-3,000 Project B $-3,000 $1,500 $300 $1,200 $600 $600 $600 4 $600 $1,200 5 $300 $2,100 At MARR of 12%, which project would you select?

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Chapter1: Making Economics Decisions
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4. Consider two investments with the following sequences of cash flows:
Net Cash Flow
n
Project A
0
1
2
3
$-3,000
Project B
$-3,000
$1,500
$300
$1,200
$600
$600
$600
4
$600
$1,200
5
$300
$2,100
At MARR of 12%, which project would you select?
Transcribed Image Text:4. Consider two investments with the following sequences of cash flows: Net Cash Flow n Project A 0 1 2 3 $-3,000 Project B $-3,000 $1,500 $300 $1,200 $600 $600 $600 4 $600 $1,200 5 $300 $2,100 At MARR of 12%, which project would you select?
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