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Consider two investments at a MARR of 12% with the following sequences of cash flows: Period Project A Project B 0 -$4,000 -$3,000 1 $2,000
- Consider two investments at a MARR of 12% with the following sequences of cash flows:
Period | Project A | Project B |
0 | -$4,000 | -$3,000 |
1 | $2,000 | $300 |
2 | $1,600 | $600 |
3 | $1,200 | $900 |
4 | $800 | $1200 |
5 | $400 | $1,500 |
- Do both projects have an acceptable rate of return?
- Based on incremental analysis, which project would you select?
Dissection: identify input & output variables and include cash flow table
Solution: identify method
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