L is salvage value

I is income

Q2-Three unequal life investment alternatives as shown below. A C=$160 = $150 -$150 -$150 1-$150 1=$150 L=550,000 B C=5320 =$275 -275 -$275 1-$275 L=$70,000 C=$480 =500 -$500 $500 L=$100,000 0 1 2 3 4 5 Assume $480 is available to invest at 20% ROR, USE NPV analysis to determine how $480 should be spend if alternative non-mutually exclusive and if mutually! exclusive.verify with PVR