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5.49 Consider the two mutually exclusive projects in Table P5.49. Salvage values represent the net proceeds (after tax) from disposal of the assets if they
5.49 Consider the two mutually exclusive projects in Table P5.49. Salvage values represent the net proceeds (after tax) from disposal of the assets if they are sold at the end of each year. Both projects B1 and B2 will be available (or can be repeated) with the same costs and salvage values for an indefinite period. (a) Assuming an infinite planning horizon, which project is a better choice at MARR =12% ? (b) With a 10 -year planning horizon, which project is a better choice at MARR =12% ? TABLE P5.49
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