Question: se) 1. The cash flows (in KD) for two mutually exclusive alternatives in Kuwait are as in the table below: [4] X-Y 0 -3,000 -12,000

 se) 1. The cash flows (in KD) for two mutually exclusive

se) 1. The cash flows (in KD) for two mutually exclusive alternatives in Kuwait are as in the table below: [4] X-Y 0 -3,000 -12,000 -9,000 1 1,350 4,200 2,850 2 1,800 6,225 4,425 3 1,500 6,330 4,830 RoR (%) 23 18 15 a. Which project would you select at MARR = 20%? Why? [2] b. Which of the two alternatives is not financially viable? Why? [2] 2. The equivalent annual worth of an increasing arithmetic gradient is $55,400. If the cash flow in year 1 is $17,000 and the gradient amount is $11,000, what is the value of n at an interest rate of 8% per year? [4]

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