Consider two mutually exclusive investment projects, each with MARR = 12%, as shown in Table 5.31. (a) On the basis of the NPW criterion, which alternative would be selected? (b) On the basis of the NFW criterion, which alternative would be selected? PTER 5 Present-Worth Analysis TABLE P5.3 I Two Mutually Exclusive Investment Projects Project's Cash Flow A B -$14,500 - $12,900 1 12,610 11,210 2 12,930 11,720 3 12,300 11,500

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Chapter17: Long-term Investment Analysis
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q5.31.22

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5.31 Consider two mutually exclusive investment projects, each with MARR = 12%,
as shown in Table 5.31.
(a) On the basis of the NPW criterion, which alternative would be selected?
(b) On the basis of the NFW criterion, which alternative would be selected?
• CHAPTER 5 Present-Worth Analysis
TABLE P5.3 I Two Mutually Exclusive
Investment Projects
Project's Cash Flow
A
B
-$14,500
-$12,900
1
12,610
11,210
2
12,930
11,720
3
12,300
11,500
Transcribed Image Text:5.31 Consider two mutually exclusive investment projects, each with MARR = 12%, as shown in Table 5.31. (a) On the basis of the NPW criterion, which alternative would be selected? (b) On the basis of the NFW criterion, which alternative would be selected? • CHAPTER 5 Present-Worth Analysis TABLE P5.3 I Two Mutually Exclusive Investment Projects Project's Cash Flow A B -$14,500 -$12,900 1 12,610 11,210 2 12,930 11,720 3 12,300 11,500
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