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 6,000 10 5,200 2,100 1,200 A 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 ($) Project life (years) Annual revenue ($) Annual cost ($) Salvage value ($) Project 6,000 10 5,200 2,100 1,200 A 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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