Consider the following two investment alternatives given in Table P5.53.
The firm's MARR is known to be 15%.
(a) Compute PW( 15%) for project A1.
(b) Compute the unknown cash flow X in years 2 and 3 for project A2.
(c) Compute the project balance (at 15%) of project A1 at the end of period 3.
(d) If these two projects are mutually exclusive alternatives, which one would you select?

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Project's Cash Flow AI A2 0 -$ 15.000 9,500 12,500 7,500 -$ 25,000 0 PW(15%) 9,300