Question: 2) Consider the following two mutually exclusive investment projects, each with MARR = 20%: Projects Cash Flow ($) n A B 0 -10000 -12500 1

2) Consider the following two mutually exclusive investment projects, each with MARR = 20%:

Projects Cash Flow ($)

n

A

B

0

-10000

-12500

1

2500

15000

2

20000

5000

(a) On the basis of the NPW criterion, which project would be selected?

(b) Sketch the PW(i) function for each alternative on the same chart between 0% and 50%. For what range of i would you prefer project B?

PLEASE SHOW ALL WORK/CALCULATIONS. IF USING EXCEL PLEASE SHOW WHAT FORMULA IS USED FOR EACH COLUMN.

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