A budge of $250,000 is available for investing at a MARR of 15%. Possible projects (with equal lives) are given as:
Project Initial Investment ($)Present Worth ($)A 110,000 117,635B35,000 145,637C 100,000 239,818D 200,000 -13,969E 190,000 181,229
(a) If the five projects above are mutually exclusive alternatives, perform the present worth analysis and select the best alternative.
(b) Assuming that the five projects above are independent alternatives and that at most two projects can be selected while considering the budget, make the best decision by forming and comparing the relevant mutually.