Determine which should be selected if they are independent

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The U.S. Bureau of Reclamation is considering fi ve national park projects shown below, all of which can be considered to last indefi nitely. At a MARR of 7.5% per year, determine which should be selected, if they are ( a ) independent and ( b ) mutually exclusive.

Project ID

First Cost, $1000

Annual Income, $1000

Rate of Return, %

A

-20,000

2000

10

B

-10,000

1300

13

C

-15,000

1000

6.6

D

-70,000

4000

5.7

E

-50,000

2600

5.2

Reference no: EM13882061

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