Consider the three mutually exclusive projects that follow


Question: Consider the three mutually exclusive projects that follow. The firm's MARR is 10% per year.

EOY       Project 1          Project 2         Project 3

0          -$10,000           -$8,500          -$11,000

1-3        $5,125              $4,450            $5,400

a. Calculate each project's PW.

b. Determine the IRR of each project.

c. Which project would you recommend?

d. Why might one project have the highest PW while a different project has the largest IRR?

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Engineering Mathematics: Consider the three mutually exclusive projects that follow
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