Project A and Project B are mutually exclusive. Their cash flow diagrams are shown below. Use Present Worth Analysis to answer the following question: which project 18% assuming there is no do-nothing alternative? should be accepted at MARR = 0 $100,000 Figure 1 - Project A 0 $50,000 $100,000 Figure 2- Project B $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 2 $50,000 2 3 3 4 $50,000 4 5 5 6 $50,000 6 7 7 $75,000 8 $50,000 8

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. Project A and Project B are mutually exclusive. Their cash flow diagrams are
shown below. Use Present Worth Analysis to answer the following question: which project
should be accepted at MARR = 18% assuming there is no do-nothing alternative?
0
$100,000
Figure 1 - Project A
0
$50,000
$100,000
Figure 2- Project B
$30,000 $30,000 $30,000 $30,000 $30,000 $30,000
2
$50,000
2
3
3
4
$50,000
4
5
5
6
$50,000
6
7
7
$75,000
8
$50,000
8
Transcribed Image Text:. Project A and Project B are mutually exclusive. Their cash flow diagrams are shown below. Use Present Worth Analysis to answer the following question: which project should be accepted at MARR = 18% assuming there is no do-nothing alternative? 0 $100,000 Figure 1 - Project A 0 $50,000 $100,000 Figure 2- Project B $30,000 $30,000 $30,000 $30,000 $30,000 $30,000 2 $50,000 2 3 3 4 $50,000 4 5 5 6 $50,000 6 7 7 $75,000 8 $50,000 8
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