Question: Add the excel solution too please A company is planning to start an investment, for which there are 3 alternatives. The company can choose only
Add the excel solution too please
A company is planning to start an investment, for which there are 3 alternatives. The company can choose only one of these, in other words: the projects are mutually exclusive.
Data given:
- All projects have the same useful life, of 10 years.
- The (annual nominal, compounded annually) MARR is 10% for investments with initial investment of $4,000 or less and 11% for investments with initial investment of more than $4,000
- Table containing the Initial Investment and the Annual net cash flows (constant):
|
| 1 | 2 | 3 |
| Initial Investment | -$3,000 | -$7,500 | -$4,000 |
| Annual net cash flow | $580 | $1,370 | $650 |
a) Use the incremental investment analysis procedure .What is the best project using the NPV-method ?
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