Select the appropriate bundle of proposals using capital budgeting method. Here MARR is 12% per year and available capital budget is $20,000. Net Cash Flow(NCF), S Proposa Initial Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 1 Investment, S PI -7,000 +1,000 +1,70 +2,40 +3,10 +3,80 +4,50 0 0 0 0 P2 -11,000 -900 -600 +700 +700 +600 P3 -9,000 +5,000 5,000 2,000 -300 +300 +1200

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Select the appropriate bundle of proposals using capital budgeting method. Here MARR
is 12% per year and available capital budget is $20,000.
Net Cash Flow(NCF), S
Proposa
Initial
Yr 1
Yr 2
Yr 3
Yr 4
Yr 5
Yr 6
1
Investment, S
PI
-7,000
+1,000
+1,70
+2,40
+3,10
+3,80
+4,50
0
0
0
0
P2
-11,000
-900
-600
+700
+700
+600
P3
-9,000
+5,000
5,000
2,000
-300
+300
+1200
Transcribed Image Text:Select the appropriate bundle of proposals using capital budgeting method. Here MARR is 12% per year and available capital budget is $20,000. Net Cash Flow(NCF), S Proposa Initial Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 1 Investment, S PI -7,000 +1,000 +1,70 +2,40 +3,10 +3,80 +4,50 0 0 0 0 P2 -11,000 -900 -600 +700 +700 +600 P3 -9,000 +5,000 5,000 2,000 -300 +300 +1200
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