The U.S. Bureau of Reclamation is considering fi ve national park projects shown below, all of which can be considered to last indefi nitely. At a MARR of 7.5% per year, determine which should be selected, if they are ( a ) independent and ( b ) mutually exclusive.
|
Project ID
|
First Cost, $1000
|
Annual Income, $1000
|
Rate of Return, %
|
|
A
|
-20,000
|
2000
|
10
|
|
B
|
-10,000
|
1300
|
13
|
|
C
|
-15,000
|
1000
|
6.6
|
|
D
|
-70,000
|
4000
|
5.7
|
|
E
|
-50,000
|
2600
|
5.2
|