Question: Two mutually exclusive projects have the estimated cash flows shown below. Use a future worth analysis to determine which should be selected at an interest

Two mutually exclusive projects have the estimated cash flows shown below. Use a future worth analysis to determine which should be selected at an interest rate of 10% per year.

	Q	R
First cost, $	42,000	80,000
Annual Cost, $	6,000	$7,000 year 1, increasing by a $1,000 per year
Salvage value, $	0	4,000
Life, years	4	8

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