Use Excel to answer the following question: The capital fund for research project investment at a...

Use Excel to answer the following question:

The capital fund for research project investment at a corporation is limited to $100,000 for next year. The company uses an MARR of 15% per year. There are three independent project proposals (i.e., none, one or more can be selected) with pertinent information given in the below table.

Project	Initial Investment ($)	Annual Net Cash Flow ($/year)	Life (years)	Salvage Value ($)
A	-25,000	6,000	4	4,000
B	-30,000	9,000	4	-1,000
C	-50,000	15,000	4	20,000

(a) Formulate the mutually-exclusive alternatives (i.e., bundles) without calculating any worth. Which of the mutually-exclusive alternatives are feasible? Comment.
(b) Use the Excel built-in function NPV to perform a PW analysis for selection and comment.

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Expert Solution

Rahul Sunny answered 6 months ago

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