Question: 2. You have been asked to evaluate these three mutually exclusive alternatives each with a di'erent useful life. Your company's MARR is 20%. Project A

2. You have been asked to evaluate these three mutually exclusive

2. You have been asked to evaluate these three mutually exclusive alternatives each with a di'erent useful life. Your company's MARR is 20%. Project A could be extended an additional year with an additional cost of $50,000 payable EOY 3 with expected revenue of $65,000 at EOY 4. Project C could be terminated at EOY 4 with all its assets sold resulting in a positive cash ow of $50,000. Based on these assumptions which project would you recommend and why? Project A B C Initial Cost 510000031400005125000 Annual Benct$65,000 $75,000 $60,000 Annual Cost $4.000 $6.500 $6.000 Useful life 3 years 4 years IS Years

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