Present value analysis

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(a) Determine which of following independent projects should be selected for investment if $325,000 is available and the MARR is 10 percent per year. Use the PW method to evaluate mutually exclusive bundles to make the selection.
(b) If the five projects are mutually exclusive alternatives, perform the present worth analysis and select the best alternative.

Project Initial Investment Net Cash Flow, $Year Life Years
A -100,000 50,000 8
B -125,000 24,000 8
C -120,000 75,000 8
D -220,000 39,000 8
E -200,000 82,000 8

 

Reference no: EM1370434

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