Question: Consider the following cash flow data for two competing investment projects: (a) At i = 12%, which of the two projects would be a better

Consider the following cash flow data for two competing investment projects:

Cash Flow Data (thousands of $) Project A Project B -$1,200,000 -$1,000,000 $700,000 $700,000 $700,000 $1,000,000

(a) At i = 12%, which of the two projects would be a better choice?
(b) At i = 22%, which project is chosen by the NPW rule?

Cash Flow Data (thousands of $) Project A Project B -$1,200,000 -$1,000,000 $700,000 $700,000 $700,000 $1,000,000

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Fundamentals of Engineering Economics 3rd edition by Chan S. Park