Which should be chosen using present worth as the criteria

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The cash flow for four projects is described below of which you can invest in one project only. In all, an upfront investment is made in year 0. All projects are for five years and the MARR to be used in the evaluations is 10%.

a Which should be chosen using Present worth as the criteria?
b Which should be chosen using Annual worth as the criteria?
c What would the most that the upfront investment could be and still achieve the MARR?

Project
X1 Invest $11,000 today and receive $20,000 in the fifth year.
X2 Invest $9,000 today, receive $4,000 annually in years 1 through 5, and incur a salvage cost (cleanup) of $8,000 in year 5.
X3 Invest $12,000 today, receive $4,000 annually, incur annual costs of $2,000, and receive a salvage value of $9,000 in year 5.
X4 Invest $9,000 today, receive $1,000, $2,000, $3,000, $4,000 and $5,000 in years 1 through 5 respectively.

Reference no: EM13206099

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