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2. A firm is considering proposal projects A,B,and C, with cash flow estimated to be as follows: Project A Project B Project C Investment $6,000

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2. A firm is considering proposal projects A,B,and C, with cash flow estimated to be as follows: Project A Project B Project C Investment $6,000 $7,000 $10,000 Project life 6 years 6 years Annual revenue $5,100 $5,000 $7,500 Annual cost $3,700 $2,300 $2,800 Salvage value $1,000 $1,500 $3,000 6 years Project A and C are mutually exclusive and project B is contingent upon project A. The budget limit is $12,000 a. Develop the matrix of investment alternatives b. Indicate which alternative are not feasible and give reasons for invisibility. c. Find the best alternative using PW method assuming i = 10%

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