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Q.13) Four mutually exclusive investment alternatives are illustrated in the accompanying table; the do nothing alternative is not feasible. The cash flows (CF) are shown
Q.13) Four mutually exclusive investment alternatives are illustrated in the accompanying table; the "do nothing" alternative is not feasible. The cash flows (CF) are shown for a 10 years planning horizon. The MARR is 12%. Determine which is best using a. The PW method b. The AW method c. The FW method EOY CF(A) -$50,000 -100,000 +50,000 +50,000 +75,000 CF(B) -$125,000 -75,000 +70,000 +70,000 +70,000 CF(D) $200,000 +50,000 +50,000 +75,000 +75,000 CF(D) -$100,000 - 150,000 +75,000 +85,000 +90,000 2-5 6-9 10
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