Suppose that proposal 1 and 3 are mutually exclusive, project 2 is contingent on project 1. The budget limit is $130,000.

1.Develop the matrix of investment alternatives, indicate which one is not feasible, and give reasons for the infeasibility

2.Develop the composite cash flows for the feasible alternatives

3.Suppose the MARR is 10%, determine the best alternative using Present Worth on total investment.

Project 1 Project 2 Project 3 93,000 65.000 58,000 Investment 23,000 19,500 29,000 Annual Revenue 5,000 6,000 Annual Cost 4,500 0 10,000 Salvage Value 15,000 Project 1 Project 2 Project 3 93,000 65.000 58,000 Investment 23,000 19,500 29,000 Annual Revenue 5,000 6,000 Annual Cost 4,500 0 10,000 Salvage Value 15,000