Given the three projects and anMARR of 15%, we want to determine which project to choose. Answer the questions provided.

What is the first step to solving the problem?

What is the second step to solving the problem?

What is the third step to solving the problem?

In step one, using the MARR, what was the Net Present Worth?

In step two, using the MARR, what was the Net Present Worth?

In step three, using the MARR, what was the Net Present Worth?

(Year 6 10) Initial Cost $1,500 $1,000 $2,000 Annual Benefit for First 5250 $250 $450 5 Years Annual Benefit for Subsequent 5 years $460 $250 $400