from table below:-

To find the most profitable project among a set of potential candidates:

a) Evaluate them using AW if they have different lives, or PW or FW if they have equal lives. Then select the one with the most negative value.

b) Evaluate them using AW if they have different lives, or PW or FW if they have equal lives. Then select the one with the most positive value.

c) Evaluate them using PW or FW if they have different lives, or AW if they have equal lives. Then select the one with the most negative value.

d) Compare MARR and choose the project with the highest MARR

e) Compare IRR and choose the project with the highest IRR

Justify:____________________________________________________________

Table 1: Mutually Exclusive Alternatives A B D E Capital Investment $5,000 $5,500 $6,000 $6,500 $8,000 Annual Revenue $2,000 $2,500 $2,900 $2,389 $3,300 Annual Expense $1,000 $1,350 $1,350 $1,200 $1,800 Salvage Value $300 $500 $500 $1,500 $2,500 Project life (years) 7 7 5 8 8 IRR 10.13% 11.86% 11.16% 12.05% 13.45% PW (10%) $20.33 $322.96 $858.49 $493.63 $1,062.42 AW (10%) $4.18 $66.34 $226.47 $92.51 $199.10 FW (10%) $39.62 $629.36 $1,408.35 $1,058.14 $2,277.40 Table 1: Mutually Exclusive Alternatives A B D E Capital Investment $5,000 $5,500 $6,000 $6,500 $8,000 Annual Revenue $2,000 $2,500 $2,900 $2,389 $3,300 Annual Expense $1,000 $1,350 $1,350 $1,200 $1,800 Salvage Value $300 $500 $500 $1,500 $2,500 Project life (years) 7 7 5 8 8 IRR 10.13% 11.86% 11.16% 12.05% 13.45% PW (10%) $20.33 $322.96 $858.49 $493.63 $1,062.42 AW (10%) $4.18 $66.34 $226.47 $92.51 $199.10 FW (10%) $39.62 $629.36 $1,408.35 $1,058.14 $2,277.40