Question: You have been asked to evaluate these three mutually exclusive alternatives each with a different useful life. Your company's MARR is 20%. Project A could

You have been asked to evaluate these three mutually exclusive alternatives each with a different useful life. Your company's MARR is 20%. Project A could be extended an additional year with an additional cost of $50,000 payable EOY 3 with expected revenue of $65,000 at EOY 4. ProjectC could be terminated at EOY 4 with all its assets sold resulting in a positive cash flow of $50,000 Based on these assumptions which project would you recommend and why? Project Initial Cost Annual Benefit$65,000 Annual Cost Useful life $100,000 $140,000 $75,000 $6,500 4 years $125,000 $60,000 $6,000 6 Years $4,000 3 years
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