Consider the two mutually exclusive service projects in Table P5.47. Assuming that you need service of either
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Consider the two mutually exclusive service projects in Table P5.47.
Assuming that you need service of either machine for an indefinite period, which project would be selected at i = 16%? Assume that both types of machine are available with the same costs and benefits during the planning horizon.
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TABLE P5.47 n 0 1 2 3 Project's Cash Flow A -$22,000 17,500 17,000 15,000 B -$27,000 20,500 28,000
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