Based on PW values, determine which of the following independent projects should be selected for investment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow) ProjectInitial Investment, $NCF, $/YearLife, YearsA−100,00050,0008B−125,00024,0008C−120,00075,0008D−220,00039,0008E−200,00082,0008 Based on PW values, determine which of the following independent projects should be selected forinvestment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow)Initial Investment, $-100,000-125,000-120,000NCF, S/Year50,00024,00075,00039,00082,000ProjectLife, YearsА8В8C8D-220,0008E-200,0008

Present worth (PW) can be calculated by using the following formula. Time period is indicated by…

Answered: Based on PW values, determine which of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Based on PW values, determine which of the following independent projects should be selected for investment if $240,000 is available and the MARR is 10% per year. (NCF = net cash flow)

Project	Initial Investment, $	NCF, $/Year	Life, Years
A	−100,000	50,000	8
B	−125,000	24,000	8
C	−120,000	75,000	8
D	−220,000	39,000	8
E	−200,000	82,000	8

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