Question: Consider the cash flows in Table P6.40 for the following investment projects (MARR = 15%). (a) Suppose that projects A and B are mutually exclusive.

Consider the cash flows in Table P6.40 for the following investment projects (MARR = 15%).

(a) Suppose that projects A and B are mutually exclusive. Which project would you select, based on the AE criterion?
(b) Assume that projects B and C are mutually exclusive. Which project would you select, based on the AE criterion?

Project's Cash Flow $3,500 1.500 1,800 1,000 $4,000 1.600 1.500 1.500 1,500 -$6,000 2,000 2.000 2,500

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