Question: 11. Two types of productivity programs are being considered for funding. Both have an initial cost of $10,000 for training equipment and consulting contracts. Program

 11. Two types of productivity programs are being considered for funding.

11. Two types of productivity programs are being considered for funding. Both have an initial cost of $10,000 for training equipment and consulting contracts. Program A promises to produce constant net revenues of $4,000 per year for 5 years. Net revenues from program B are expected to be $10,000 the first year and $2,000 per year for the next 4 years. All revenues are considered end-ofyear receipts. a) Which program is preferable at MARR =10% ? b) Which program is preferable at MARR =20% ? c) Draw a graph of PW versus %(0%,10%,20%, and 30% ) for the two proposals and state a decision rule for selecting between the two proposals

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