Which project should be selected using present worth


The following three projects are available but because of resource limitations, only one can be done. The Do Nothing option is also available and the company MARR is 15%.

            F0                    F1                    F2                    F3                    F4                    F5

A          -$10,000          $5,000             $2,000             $2,500             $3,000             $3,100

B          -$7,000            $2,000             $2,500             $3,000             $2,000             $1,000

C         -$6,000            $2,000             $2,000             $2,500             $2,750             $3,000

a) Which project should be selected using ROR incremental analysis?

b) Which project should be selected using present worth incremental analysis?

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Financial Management: Which project should be selected using present worth
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