When 2 projects are evaluated using AW and both values are negative, select the best answer: a) Neither project should be rejected

b) Select the project with the least negative value

c) Select the project with the most negative value

d) We need to consider IRR

e) Rank them in order from cheapest to expensive using the initial costs

Justify:_______________________________________________________________________

Table 1: Mutually Exclusive Alternatives A B D E Capital Investment $5,000 $5,500 $6,000 $6,500 $8,000 Annual Revenue $2,000 $2,500 $2,900 $2,389 $3,300 Annual Expense $1,000 $1,350 $1,350 $1,200 $1,800 Salvage Value $300 $500 $500 $1,500 $2,500 Project life (years) 7 7 5 8 8 IRR 10.13% 11.86% 11.16% 12.05% 13.45% PW (10%) $20.33 $322.96 $858.49 $493.63 $1,062.42 AW (10%) $4.18 $66.34 $226.47 $92.51 $199.10 FW (10%) $39.62 $629.36 $1,408.35 $1,058.14 $2,277.40