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Consider Two Mutually Exclusive Investments with a MARR of 60

Question 40

Essay

Consider two mutually exclusive investments with a MARR of 60%:
The first has an initial investment of $15 000 and returns $30 000 at the end of a year.
The second costs $45 000 and returns $85 500 at the end of a year. Which is the preferred investment?

Correct Answer:

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Investment 1 -15 000 + 30 000(P/F,i,1)=0...

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