8-23 Three mutually exclusive projects are beingconsidered: First costUniform annualbenefitSalvage valueUseful life (years)A$10002502005BIORCс$2000 $300035052530064007Assume identical replacements.(a) Construct a choice table for interest rates from0% to 100%.00 (b) If 8% is the desired rate of return, which projectshould be selected?

Mutually exclusive alternatives imply that only one can be chosen out of three .We will you the…

Answered: Three mutually exclusive projects are…

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Three mutually exclusive projects are being considered:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

8-23 Three mutually exclusive projects are being
considered:

First cost
Uniform annual
benefit
Salvage value
Useful life (years)
A
$1000
250
200
5
BIORC
с
$2000 $3000
350
525
300
6
400
7
Assume identical replacements.
(a) Construct a choice table for interest rates from
0% to 100%.
00 (b) If 8% is the desired rate of return, which project
should be selected?

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