Three mutually exclusive project alternatives are being evaluated. The estimated cash flows for each alternative are shown below. The MARR is 15% per year. A decision maker can select one of these alternatives or decide to select none of them. Make a recomendation using the annual worth analysis. Investment (S) Project life (years) Annual revenue (S) Annual cost ($) Salvage value (S) Project A 6,000 10 5,200 2,100 1,200 Project B 8,000 10 6,000 1,800 1,500 Project C 9,000 10 7,500 2,000 2,500
Three mutually exclusive project alternatives are being evaluated. The estimated cash flows for each alternative are shown below. The MARR is 15% per year. A decision maker can select one of these alternatives or decide to select none of them. Make a recomendation using the annual worth analysis. Investment (S) Project life (years) Annual revenue (S) Annual cost ($) Salvage value (S) Project A 6,000 10 5,200 2,100 1,200 Project B 8,000 10 6,000 1,800 1,500 Project C 9,000 10 7,500 2,000 2,500
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Three mutually exclusive project alternatives are being evaluated. The estimated cash
flows for each alternative are shown below. The MARR is 15% per year. A decision
maker can select one of these alternatives or decide to select none of them. Make a
recomendation using the annual worth analysis.
Investment ($)
Project life (years)
Annual revenue ($)
Annual cost ($)
Salvage value ($)
Project A
6,000
10
5,200
2,100
1,200
Project B
8,000
10
6,000
1,800
1,500
Project C
9,000
10
7,500
2,000
2,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd7b3a5a8-62f8-422a-9e49-23846b36685e%2F578ae5fb-017e-4087-99d2-3a9be9475aeb%2Fxpawsx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Three mutually exclusive project alternatives are being evaluated. The estimated cash
flows for each alternative are shown below. The MARR is 15% per year. A decision
maker can select one of these alternatives or decide to select none of them. Make a
recomendation using the annual worth analysis.
Investment ($)
Project life (years)
Annual revenue ($)
Annual cost ($)
Salvage value ($)
Project A
6,000
10
5,200
2,100
1,200
Project B
8,000
10
6,000
1,800
1,500
Project C
9,000
10
7,500
2,000
2,500
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