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Two mutually exclusive investment projects are being considered by a company. Data for base values...

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Finance

Two mutually exclusive investment projects are being considered by a company. Data for base values of the two alternatives are as follows:

Alpha Bravo
Initial Investment Cost $250,000 $150,000
Annual Benefits $80,000 $50,000
Salvage Value $10,000 $5,000
Useful Life 4 years 4 years
MARR = 8%. Study period = 4 years

1. Using the PW method, determine which alternative should be selected based on the projects base values.

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