Consider two possible projects that are mutually exclusive:

Project A: Benefit $ per year, Initial Cost $ in year life years

Project B: Benefit $ per year, Initial Cost $ in year life years

Suppose the appropriate discount rate is and benefits accrue at the end of each year. Calculate and answer the following:

a The NPV of each project

b The EANB for each project you need to find the annuity factors first

c According to the CBA decision rule, which project should be undertaken?

Answer rating: 100% (QA)

Project Evaluation NPV and EANB Were given information about two mutually exclusive projects and nee... View the full answer