Question: three mutually exclusive projects are being considered a b c...
Three mutually exclusive projects are being considered:
A B C
Initial cost $100 $150 $200
Annual benefit $10 $17.62 $55.48
Useful life. infinite 20 years 5 years
- Construct a choice table for interest rates from 0%-100%. Also – provide a plot of either PW or EAW as a function of i.
b. The firm wants 8% rate of return on investments. Which equipment should be purchased?