Consider the cash flows for the following investment projects. Assume that MARR=12%/year.ABC0 - PhP 1,000 – PhP 1,000 - PhP2,00019006009002500500900100500900450100900Which project should be selected using incremental analysis (AW method)?ANSWERS:AWA = PhP Blank 1AWB = PhP Blank 2AWC = PhP Blank 3AW (B-A) = PhP Blank 4AW (C-B) = PhP Blank 5Investment Blank 6 (use capital letter) is better.

It is computed as A in the formula:

Answered: 600 900 500 900 500 900

Business

Accounting

600 900 500 900 500 900

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 2PA

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Question

Consider the cash flows for the following investment projects. Assume that MARR=12%/year.
A
B
C
0 - PhP 1,000 – PhP 1,000 - PhP2,000
1
900
600
900
2
500
500
900
100
500
900
4
50
100
900
Which project should be selected using incremental analysis (AW method)?
ANSWERS:
AWA = PhP Blank 1
AWB = PhP Blank 2
AWC = PhP Blank 3
AW (B-A) = PhP Blank 4
AW (C-B) = PhP Blank 5
Investment Blank 6 (use capital letter) is better.

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