Explain evaluation of three mutually exclusive projects

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Reference no: EM1313177

Explain Evaluation of three mutually exclusive projects

Three (3) mutually exclusive projects are being considered-

Item	A	B	C
First Cost	1,000	2,000	3,000
Uniform Annual Benefits	150	150	0
Salvage Value	1,000	2,700	5,600
Useful Life	5 years	6 years	7 years
MARR	8%	8%	8%

Assume that when each project reached the end of its useful life, it was sold for the salvage value, without replacement.

Construct a choice table from 0% to 100%. Which project should be selected?

Reference no: EM1313177

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