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2. A company is planning to start an investment, for which there are 3 alternatives. The company can choose only one of these, in
2. A company is planning to start an investment, for which there are 3 alternatives. The company can choose only one of these, in other words: the projects are mutually exclusive. Data given: All projects have the same useful life, of 10 years. The (annual nominal, compounded annually) MARR is 10% for investments with initial investment of $4,000 or less and 11% for investments with initial investment of more than $4,000 Table containing the Initial Investment and the Annual net cash flows (constant): Initial Investment Annual net cash flow 1 -$3,000 $580 2 -$7,500 $1,370 3 -$4,000 $650 a) Use the incremental investment analysis procedure .What is the best project using the NPV-method?
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