Suppose the following projects are mutually exclusive.Which project should be chosen if the appropriate discount rate is 10 percent? Assume all projects can be replicated.

Question

Quizplus · Accepted Answer

Project Mars's EANPV = $15,500 / PVAF(10%,4)= $4,889.80
Project Saturn's EANPV = $17,250 / PVAF(10%,6)= $3,960.73
Project Venus's EANPV = $8,250 / PVAF(10%,2)= $4,753.57
Project Jupiter's EANPV = $20,000 / PVAF(10%,10)= $3,254.91
Choose Project Mars because it has the highest EANPV

Suppose the Following Projects Are Mutually Exclusive