Three mutually exclusive projects are being considered:

When each project reaches the end of its useful life, it would be sold for its salvage value and there would be no replacement. If 8% is the desired rate of return, which project should be selected?

Transcribed Image Text:

First cost Uniform annua $1000 150 $2000 150 $3000 benefit Salvase value Useful life, in years 1000 2700 5600