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There are two unequal life time mutually exclusive alternative investments, A and B with following cash flow. Other opportunities exist at 12% minimum rate return.
There are two unequal life time mutually exclusive alternative investments, A and B with following cash flow. Other opportunities exist at 12% minimum rate return. Project A 1=$55 1=$50 1=$45 1=$40 1=$35 1 2 3 4 5 L=$150 C=$100 1=$45 1=$40 1=$50 1 L=$80 0 2 3 C: Cost, I:Income, L:Salvage Using ROR and NPV analysis, which investment is economically better? Please include the incremental analysis and show all your work. C=$150 0 Project B
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