Three mutually exclusive projects are being considered: When each project reaches the end of its useful life,
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Three mutually exclusive projects are being considered:
When each project reaches the end of its useful life, it would be sold for its salvage value and there would be no replacement. If 8% is the desired rate of return, which project should be selected?
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A $1000 $3000 First cost $2000 Uniform annual benefit Salvage value Useful life, in years 150 150 150 1000 2700 5600
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