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2.b) You have been asked to recommend the best investment for a company (project X or Y). The MARR is 10% Please note that
2.b) You have been asked to recommend the best investment for a company (project X or Y). The MARR is 10% Please note that annual benefits do not begin until the end of year 2. There is also an annual increase of 100 EGP and 500 EGP in benefits that starts at the end of year 3 for projects X and Y respectively in gradient arithmetic manner. Use the NPW method. All data are given in the table below. Project Initial Investment Annual Benefit (Begins at end of year 2) 15,000 EGP Y 40,000 EGP 5,000 EGP 3,000 EGP Annual Benefit Increase (Begins at end of year 3) Useful Life 100 EGP 500 EGP 10 years 20 years [5 marks]
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