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A company is looking at five different potential projects, but it can only do one of them. Which project should the company select? For this
A company is looking at five different potential projects, but it can only do one of them. Which project should the company select? For this question, use the following information: A B D E -3,300 -5,300 Project Initial Investment Annual Benefit Salvage Value Useful life -6,500 1,200 -5,500 1,000 650 -7,000 1,250 1,000 950 150 425 300 200 10 10 10 10 10 13.51% IRR 14.99% 12.74% 13.26% 12.93% E-A C-A B-A D-A D-B Delta IRR 9.68% 8.88% 11.97% 11.78% 10.90% C-E B-E D-E B-C D-C Delta IRR 18.90% 16.44% 14.29% 16.79% 14.71% Which project should be selected if MARR is 10% (mutually exclusive)
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