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Consider the following two mutually exclusive projects, which have unequal service lives. N (years) Project 1 Amounts Project 2 Amounts 01 2 -600 -250

Consider the following two mutually exclusive projects, which have unequal service lives. N (years) Project 1 Amounts Project 2 Amounts 01 2 -600 -250 -250 -1600 -200 -200 3 a) Using present worth analysis. b) Using Annual worth analysis. -250+400 -200 4 -200 5 -200+850 Given that interest rate equals 10%, using minimum no. of factors, determine which project should be selected:

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