Three mutually exclusive projects all have the same life of 5 years and the MARR is $10

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Three mutually exclusive projects all have the same life of 5 years and the MARR is $10 \%$. Is there a difference in selection outcome if rate of return or present worth is used in the analysis? Which alternative is the preferred investment?

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Financial Decision Making For Engineers

ISBN: 9780300192186

1st Edition

Authors: Colin K. Drummond

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Question Posted: Apr 21, 2024 06:00 AM

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Three mutually exclusive projects all have the same life of 5 years and the MARR is $10

Question:

Project X Project Y Probability Net Cash Flow Probability Net Cash Flow Project investment Expected annual income Return on investment $12,000 $16,000 $20,000 3,000 5,000 8,000 8% 10% 12%

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Financial Decision Making For Engineers

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