You are presented with the following three projects. Your manager has asked you to evaluate all three projects and make your recommendation.
Project A
Initial Cost
$100,000
Annual Savings
$50,000
Annual Expenses
$15,000
Project life
8 years
MARR
5%
Project B
$50,000
$30,000
$5,000
8 years
5%
Project C
$98,000
$40,000
$25,000
8 years
5%
To view the interest factors for discrete compounding when i=5%, 10% and 15% per year respectively, check the tables in your given formula sheet or the internet.