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Using the PW criterion, which of the following projects is preferred and what is its present worth?i = 6%.Planning Horizon 30 years. Project A:Initial Cost350,000.Revenue
Using the PW criterion, which of the following projects is preferred and what is its present worth?i = 6%.Planning Horizon 30 years.
Project A:Initial Cost350,000.Revenue in first year 20,000.Each year revenue increases by 5,000 and expenses increase by 1,000.
Project B:InitialCost450,000.Revenue in first year 45,000.Each year revenue increases by 1,000 but expenses increase by 1500.
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