Project evaluation Mutually exclusive projects With unequal lifes 1. A company is planning to start an investment, for which there are 4 alternatives. The company can choose only one of these, in other words: the projects are mutually exclusive. Data given: The (annual nominal, compounded annually) MARR is 10% if the investment is $1,250 or less, 11% if the investment is higher than $1,250 but $2,250 or less, and 12% if the investment is higher than $2,250. Table containing the Initial Investment, the Annual net cash flows (constant) and the useful life: Initial Investment Annual net cash flow Useful life (years) Salvage Value 1 2 3 4 -$1,000 -$1,500 -$2,000 -$3,000 $450 $470 3 5 $500 6 $650 6 $0 $0 $200 $500 What is the best project, using the annual equivalent cost method.