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A company considers two mutually exclusive 2-year projects. Project A requires $2,500 in equipment investment, with annual revenues of $1,600 in year 1 and $1,840
A company considers two mutually exclusive 2-year projects. Project A requires $2,500 in equipment investment, with annual revenues of $1,600 in year 1 and $1,840 in year 2. Project B requires purchasing $3,600 worth of equipment, and its annual revenues will be at $2,600 in year 1 and $2,200 in year 2. If companys MARR = 15%, which project should be selected based on the ERR criterion?
1 - A and B
2 - B
3 - A
4 - Do nothing
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