41. Two anti-pollution project proposals are being considered by Energon Industries. The expected cash flows are as follows:
End of Year
Project 1
Project 2
0
- P3.5M
- P4.5M
1
- 0.25M
- 0.125M
2
- 0.375M
3
- 0.5M
4
- 0.625M
5
- 1.55M
Using the incremental investment approach and a 12 % MARR, determine the better alternative.
(Ans. i2-1=9.17% ; select Project 1)
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