Question: 3. Consider the three mutually exclusive projects in Table 6-3. The firms MARR is 10% per year. (1) Calculate each projects PW. (2) Determine the

3. Consider the three mutually exclusive projects in Table 6-3. The firm’s MARR is 10% per year.

(1) Calculate each project’s PW.

(2) Determine the IRR of each project.

(3) Which project would you recommend?

Table 6-3

	Project 1	Project 2	Project 3
Investment	$10,000	$8,500	$11,000
Annual Profit	$5,125	$4,450	$5,400
Study period (years)	3	3	3

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