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Two projects are being considered for implementation at an MARR of 6%. Both have equal other costs and benefits, and the decision needs to be
Two projects are being considered for implementation at an MARR of 6%. Both have equal other costs and benefits, and the decision needs to be made based on the initial costs only. The first project has a perpetual life, and the second project has life as shown. Which project should be selected?
Project A | Project B | |||
Initial cost | ($35,000,000) | Initial cost | ($21,500,000) | |
Life | Perpetual | Salvage | $2,400,000 | |
Life in years | 15 |
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