Problem
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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.