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2. 50 Points Two projects are competing for funding at your company. The current interest rate is 5%. Project A is an Energy Saving project
2. 50 Points Two projects are competing for funding at your company. The current interest rate is 5%. Project A is an Energy Saving project that costs $15,000. It doesn't save any money in Year 1, but begins in Year 2 at $1000, Year 3 at $2000, Year 4 at $3000. and Year 5 at $4000. Project B is a Water Saving project that costs $13,500. It begins saving money in Year 1 through 4 at $3000. a. Draw the cash flow diagrams (5 points) b. Which should you select as the best economic alternative? Show your calculations for both alternatives for credit (and use the compound interest tables, not formulas) to justify your answer. Pay close attention to the durations of each project! (45 pts)
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