In: Finance
IF there is an option, reject both since both have negative equivalent annual benefit. However if one has to be selected, select B since it has a higher Equivalent benefit.
Year | A | B |
0 | -9000 | -11000 |
1 | 1800 | 3200 |
2 | 1950 | 3050 |
3 | 2100 | 2900 |
4 | 2250 | 4250 |
5 | 3000 | |
NPV | -1211.39 | -946.30 |
EUAB | ($336.05) | ($311.55) |