There are two unequal life time mutually exclusive alternative investments, A and B with following cash...

 

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There are two unequal life time mutually exclusive alternative investments, A and B with following cash flow. Other opportunities exist at 14% minimum rate return. Project A C-$150 0 Project B C-$100 0 1-$55 1-$50 1-$45 1-$40 1-$35 1 2 3 4 5 1=$50 1 1-$45 2 1-$40 3 L-$150 L-$100 C: Cost, I:Income, L:Salvage Using ROR and NPV analysis, which investment is economically better? Please include the incremental analysis and show all your work. There are two unequal life time mutually exclusive alternative investments, A and B with following cash flow. Other opportunities exist at 14% minimum rate return. Project A C-$150 0 Project B C-$100 0 1-$55 1-$50 1-$45 1-$40 1-$35 1 2 3 4 5 1=$50 1 1-$45 2 1-$40 3 L-$150 L-$100 C: Cost, I:Income, L:Salvage Using ROR and NPV analysis, which investment is economically better? Please include the incremental analysis and show all your work.

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