Calculate the Net Present Value and the Annualized Net Present Value for the two projects with the following cash flow streams given an MARR of 15%. Which project is preferable based on the NPV? Which is preferable based on the ANPV? Which of the two techniques should be used in this case? Why?
|
Year
|
0
|
1
|
2
|
3
|
4
|
5
|
|
CF1
|
-$54,687
|
$32,567
|
$28,456
|
$30,423
|
|
|
|
CF2
|
-$98,435
|
$28,954
|
$31,984
|
$36,976
|
$38,984
|
$42,978
|