Question: Three mutually exclusive projects are being considered: When each project reaches the end of its useful life, it would be sold for its salvage value

Three mutually exclusive projects are being considered:

When each project reaches the end of its useful life, it would be sold for its salvage value and there would be no replacement. If 8% is the desired rate of return, which project should be selected?

First cost Uniform annua $1000 150 $2000 150 $3000 benefit Salvase value Useful life, in years 1000 2700 5600

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