Each alternative has five-year life

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Reference no: EM131814761

Abby W is considering investing in one of the following investment projects.

A B C D E

First Cost 100.00 130.00 200.00 300.00 0.00

Annual Income 150.00 130.78 185.00 184.55 0.00

Annual Cost 123.62 92.00 137.52 93.00 0.00

Each alternative has a 5-year life. If Abby requires at least an 8% return on her investments, which alternative should she select?

Reference no: EM131814761

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