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Three projects are considered for a new assembly line of mobile phones. The following is the economic data for each project: Life (years) Initial Investment

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Three projects are considered for a new assembly line of mobile phones. The following is the economic data for each project: Life (years) Initial Investment (KD) Net revenue (KD) Project A 6 75000 KD 1560/month 3200 Project B 6 65000 KD 14600/year Project C 6 85000 KD 9100 every 6 months 6500 Salvage value (KD) 4500 (a) What are the feasible alternatives, if projects A and B are mutually exclusive, project B in- contingent upon project C, and the budget limit is 140,000 ? (b) Select the best alternative using annual equivalent on total investment. MARR = 8% (compounded annually). (c) Select the best alternative using present worth on incremental investment

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