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Due to regulatory standards, your company must select an environmentally friendly project. Otherwise, your company will incur a $50,000 fine (in Year O). Your company

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Due to regulatory standards, your company must select an environmentally friendly project. Otherwise, your company will incur a $50,000 fine (in Year O). Your company is considering two independent projects. Which project should be selected? Project A Initial Investment Annual Cost MARR $90,000 $30,000 5% 10 years $55,000 5% 10 Life Project B Initial Investment none Annual Cost MARR Life Savings (Great- 10%) Savings (Most Likely - 65%) Savings (Pessimistic - 25%) $60,000 Savings per year (Great - 25%) Savings per year (Most Likely -50%) Savings per year (Pessimistic - 25%) $60,000 $40,000 $50,000 $10,000 $30,000 O Project A O Project B Both Project A and B Neither Project A or B

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