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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