Explain mutually exclusive investment opportunities

Reference no: EM13191363

Suppose A through F constitute a set of feasible, mutually exclusive investment opportunities. Assume Do Nothing is not an option (i.e. must pick from A through B). Using (1) Present Worth, (2) Annual Worth (EAW), (3) Future Worth, (4) IRR, (5) B/C Ratio, (6) Payback, and (7) Discounted Payback.

First cost is accrued at end-of-year zero.

Annual benefit is accrued at end-of-years 1-15. MARR is 7%.

A B

Initial Cost $3,000 $5,000

Anual Cost $400 $630

Salvage Value $250 $0

Useful Life 15 years 15 years

Which would be chosen?

Reference no: EM13191363

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