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2. The cash flows (in KD) for two mutually exclusive alternatives in Kuwait are as in the table below: [5] n Y X-Y 0 -3,200

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2. The cash flows (in KD) for two mutually exclusive alternatives in Kuwait are as in the table below: [5] n Y X-Y 0 -3,200 -12,000 -8,800 1 1,000 4,500 3,500 2 1,600 5,600 4,000 3 3 1,400 6,500 5,100 ROR (%) 11 17 19 a. Which alternative will you select at MARR = 18%? Why? [2] b. Name each alternative that is infeasible? Justify your answer [2] c. If the alternatives X and Y are independent, which one will you select? [1]

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