Question: Consider the following two mutually exclusive projects: Project's Cash Flow n Model A Model B o -8,000 -15,000 1 3,500 10,000 2 3,500 10,000 3

Consider the following two mutually exclusive

Consider the following two mutually exclusive projects: Project's Cash Flow n Model A Model B o -8,000 -15,000 1 3,500 10,000 2 3,500 10,000 3 3,500 Both models will have no salvage value upon their disposal (at the end of their respective service lives). Both A and B will be available (or can be repeated) with the same costs and salvage values for an indefinite period. Assuming an infinite planning horizon, which project is a better choice at MARR=12%? Use present worth analysis to answer the question above

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