Which of the capital investment projects in Figure P7.42 would you choose, and why? (a) Select Project

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Which of the capital investment projects in Figure P7.42 would you choose, and why?

(a) Select Project A because it has a larger IRR.(b) Select Project B because it has a larger cash flow.
(c) Select either one because both have the same NPW.
(d) None of the above.

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Contemporary Engineering Economics

ISBN: 9780134105598

6th Edition

Authors: Chan Park

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Question Posted: Dec 22, 2022 07:38 AM

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Which of the capital investment projects in Figure P7.42 would you choose, and why? (a) Select Project

Question:

0 $300 Project A $450 2 IRR = 22.47% PW (10%) = $71.90% Figure P7.42 0 $1,291 1 Project B 2 $1,000 IRR = 13.89% PW(10%) = $71.90%

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Contemporary Engineering Economics

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