12) For two mutually exclusive projects with equal lives, the one with A) a higher IRR should be chosen. B) a higher incremental PW at the MARR should be chosen. C) a higher incremental FW at the MARR should be chosen. D) a higher incremental IRR than the MARR should be chosen. E) a higher incremental AW at the MARR should be chosen. 14) I can invest for a pension in either the Senex or the Geriatrix pension plan. Senex requires me to invest $1500 a year for the next 15 years (beginning one year from now), whereas Geriatrix requires an immediate deposit of $5 000 and 15 subsequent annual investment of $1 200 a year (also starting one year from now ). Senex pays 10% on my investments, whereas Geriatrix pays 9%. How much more money will I have in my pension plan in 15 years time if I invest in Geriatrix? A) $1 500 B) $3 380 C) $10 610 D) $5 790 E) I will have less money than if I had invested in Senex. 15) A textile company is considering opening a production and shipping facility in Dallas to keep up with demand for its pillows. The 105,000-square-foot facility, if purchased, will require an initial investment of $255,000 and an annual operating cost of $68,500. It will have a $80,000 salvage value after 8 years. Alternatively, the facility can be leased with annual rent of $51,000 in year 1 and increasing by $1000 per year. If the company's minimum attractive rate of return is 6% per year, compounded quarterly, should the facility be purchased or leased? A) Lease B) Purchase C) Both of them might be a choice D) Not enough information to decide E) We should look for another option