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Projects on the basis of npv analysis

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Reference no: EM133074474

You are considering two projects: Project 1 has an initial cost of $700,000, an annual operating cost of $80,000, salvage value of $40,000, and a life of 3 years; Project 2 has an initial cost of $800,000, an annual operating cost of $70,000, salvage value of $50,000 and a life of 4 years. Using MARR of 12%, select one of the projects on the basis of NPV analysis. (Hint: Need to use LCM for project lives)

Reference no: EM133074474

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