Problem 2 (18) The following table shows the cost and benefit (in k$) of 4 proposals. Al and A2 are mutually exclusive. B and C are independent proposals but they are contingent on A1 or A2. The study period is 15 years and MARR is 10% p.a. Determine which proposals should be recommended when (1) The capital is unlimited (8) (2) The capital is limited to $500k (10) Proposal A1 A2 B C Initial cost -200 -250 -200 -100 Annual benefit 30 40 28 15 Salvage value at the end of study period 20 35 10 10 Problem 2 (18) The following table shows the cost and benefit (in k$) of 4 proposals. Al and A2 are mutually exclusive. B and C are independent proposals but they are contingent on A1 or A2. The study period is 15 years and MARR is 10% p.a. Determine which proposals should be recommended when (1) The capital is unlimited (8) (2) The capital is limited to $500k (10) Proposal A1 A2 B C Initial cost -200 -250 -200 -100 Annual benefit 30 40 28 15 Salvage value at the end of study period 20 35 10 10