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The transactions of two mutually exclusive project are as presented below: Project A Rs. 500,000 Project B Rs. 900,000 Initial cost Useful life in years Annual maintenance cost Salvage value at the end of life Rs. 90,000 Rs. 225,000 Rs. 10,000 Rs. 560,000 At 18 % interect rate, So the best project by using the present worth method of comparison is? Project A

The transactions of two mutually exclusive project are as presented below: Project A Rs. 500,000 Project B Rs. 900,000 Initial cost Useful life in years Annual maintenance cost Salvage value at the end of life Rs. 90,000 Rs. 225,000 Rs. 10,000 Rs. 560,000 At 18 % interect rate, So the best project by using the present worth method of comparison is? Project A

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The transactions of two mutually exclusive project are as presented below: Project A Rs. 500.000 Project B Rs. 900,000 Initial cost Useful life in years Rs. 10.000 Rs. 90,000 Rs. 225,000 Annual maintenance cost Salvage value at the end of life Rs. 560,000 At 18 % interect rate, So the best project by using the present worth method of comparison is? Project A O Project A or B Project B None of the above For the above question the calculation of Project A are? 335,000 $ 589,820 $ 636,390 $ O 731, 570 $ For the above question the calculation of ProiectB are?
Transcribed Image Text:The transactions of two mutually exclusive project are as presented below: Project A Rs. 500.000 Project B Rs. 900,000 Initial cost Useful life in years Rs. 10.000 Rs. 90,000 Rs. 225,000 Annual maintenance cost Salvage value at the end of life Rs. 560,000 At 18 % interect rate, So the best project by using the present worth method of comparison is? Project A O Project A or B Project B None of the above For the above question the calculation of Project A are? 335,000 $ 589,820 $ 636,390 $ O 731, 570 $ For the above question the calculation of ProiectB are?
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