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Q2-Three unequal life investment alternatives as shown below. A C=$160 = $150 -$150 -$150 1-$150 1=$150 L=550,000 B C=5320 =$

L is salvage value

I is income

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Answer #1

A B C D E F G н Project 2 1 150 5 200 Nm + no 0 -160 -320 -480 150 275 3 150 275 600 4 150 345 NPV 308.69 425.66 631.11 275 5

В C D E F G H I Project Hnm + No 0 1 2 3 -160 150 150 150 -320 275 275 275 -480 500 500 =500+100 4 150 =275+70 NPV =150+50 =N

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