Question: Tempe Inc. is considering four mutually exclusive public projects. The capital investment requirements, annual operating & maintenance (O&M) costs, and salvage values of these

Tempe Inc. is considering four mutually exclusive public projects. The capital investment

Tempe Inc. is considering four mutually exclusive public projects. The capital investment requirements, annual operating & maintenance (O&M) costs, and salvage values of these projects are given below. Each project has a useful life of 40 years, and the minimum attractive rate of return for Tempe is 11% per year. Which of the four projects, if any, should be selected? A Capital Investment Annual Benefit Annual O&M Cost Market Value $21,500,000 4,800,000 1,790,000 2,260,000 B $16,800,000 4,250,000 1,130,000 2,080,000 C $30,400,000 5,900,000 2,040,000 3,800,000 D $25,700,000 4,900,000 1.800,000 2,900,000

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