Three mutually exclusive project alternatives are being evaluated. The estimated cash flows for each alternative are given below. The MARR is 15% per year. At the conclusion of its useful life the investment will be sold.

A decision-maker can select one of these alternatives or decide to select none of them. Make a recommendation using the AW and FW methods.

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Project A Project B Project C Investment Project life $6,000 $8,000 $9,000 10 years 10 years 10 years Annual revenue $5,200 $6,000 500 $2,100 $1,800 $2,000 Salvage value S1,200 $1,500 $2,500