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You have the following investment options as laid out in the table below: Project Cash Flow Year A B C D E 0 -$1000 -$1200
You have the following investment options as laid out in the table below:
| Project Cash Flow | ||||
Year | A | B | C | D | E |
0 | -$1000 | -$1200 | -$2000 | -$1600 | -$1400 |
1 | 900 | 800 | 950 | 900 | 400 |
2 | 500 | 700 | 950 | 900 | 400 |
3 | 100 | 700 | 950 | 900 | 1200 |
4 | 50 | 300 | 950 | 900 | 400 |
If your MARR is 15%, which of these options should you select? Solve this problem by challenger-defender analysis.
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