(15 marks) Consider two mutually exclusive project options.

Use the EW (PW, AW and FW) method:

Which alternative is preferable if MARR = 8%?

Which alternative is preferable if MARR = 15%?

2. (15 marks) Consider two mutually exclusive project option Factor $94,000 Capital Investment Annual Revenues Annual Expenses Useful Life Salvage Value, End of Life IRR $121,000 $48,000 $70,000 $18,000 $40,000 5 yrs $25,000 22.99% rs $5000 21.09% Use the EW (PW, AW and FW) method: (a) Which alternative is preferable if MARR-8%? (b) which alternative is preferable if MARR-15%