Consider the cash flows of the following investment projects (MARR = 15%):     (a) Assume that A and B are mutually exclusive projects. Which project is selected according to the AE criteria? (b) Suppose B and C are mutually exclusive projects. Which project is selected according to the AE criteria?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Consider the cash flows of the following investment projects (MARR = 15%):

 

 

(a) Assume that A and B are mutually exclusive projects. Which project is selected according to the AE criteria?

(b) Suppose B and C are mutually exclusive projects. Which project is selected according to the AE criteria?

А
В
-2500
-4000
-5000
1
1000
1600
1800
2
1800
1500
1800
3
1000
1500
2000
4
400
1500
2000
Transcribed Image Text:А В -2500 -4000 -5000 1 1000 1600 1800 2 1800 1500 1800 3 1000 1500 2000 4 400 1500 2000
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