In: Economics
Three mutually exclusive projects are being considered:
A |
B |
C |
|
First cost |
$1000 |
$2000 |
$3000 |
Uniform annual benefit |
250 |
350 |
525 |
Salvage value |
200 |
300 |
400 |
Useful life (years) |
5 |
6 |
7 |
Assume identical replacements.
(b)If 8% is the desired rate of return, which project should be selected?