Four mutually exclusive projects are being considered for investment. The life of the projects is expected to be 80 years. The sponsoring agency's MARR is 12% per year. Data for the projects are as follows:

Plot the AW of each alternative against MARR as the MARR varies across this range: 4%, 8%, 12%, and 15%. What can you generalize about the range of the MARR for which each alternative is preferred?

Projects Initial Annual IRR cost $62,000 $452,000 $150,000 $55,000 receipts $10,000 $8,000 $20,000 $90,000 16.1% 15.4% 13.3% 16.4%