Question: Considering mutually exclusive projects and burnout and long gasting. Burn out Requires an initial investment of $36 as a 3-year life and we'll have revenues
Considering mutually exclusive projects and burnout and long gasting. Burn out Requires an initial investment of $36 as a 3-year life and we'll have revenues of $100 per year.
Long-lasting requires an investment of $60 has a five-year life and will have revenue of 88 per year the salvage value is zero, in either case, your tax rate is 30% and the required return is 10%. You must choose between the two and expect to replace them forever you should
take the option with the lowest IRR
Take the option with the greatest positive EANPV
Take the option with the lowest payback.
take the option with the greater Pi
take the option with the greater positive npv
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