Question
3. Palestine Industrial Company Ltd. is studying three projects for investment. If the used MARR is 7%, based on the information below answer the following:
3. Palestine Industrial Company Ltd. is studying three projects for investment. If the used MARR is 7%, based on the information below answer the following: Project A Initial Cost (S) 50000 AOC B 75000 2000 starting from year one with 5000 (1st 4 years) 3200 G-(500) Revenues/year 12000 Salvage 12000 Life (from year 5 to the end 12000 33000 14 1. If the three projects are independent which projects should the company invest in? 2. If the projects are Mutually Exclusive, which projects should the company invest in? 3. Find the capital recovery of alternative A
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