Consider the two mutually exclusive projects in the table below. 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 MARRequals=10% Use 15 years as the common analysis period.

(b) With a10?-year planning? horizon, which project is a better choice at MARR equals=10?%?