Question: You are asked to decide between two projects based on annual equivalent worth. A B -$10,000...-$12,000 $6,000..$7,000 $5,000..$8,000 $4,000 (a) What assumptions do you need

You are asked to decide between two projects based on annual equivalent worth.

A B

-$10,000…………………...-$12,000

$6,000………………………..$7,000

$5,000………………………..$8,000

$4,000

(a) What assumptions do you need to make in comparing these mutually exclusive revenue projects?
(b) Based on the assumptions in (a), which project should you choose at i = 10%?

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