Thanks! 2. You are considering two mutually exclusive financial opportunities. Project A requires an initial outlay of $100,000, offers $15,000 a year for twelve years, and has an expected residual...

2

Extracted text: Thanks! 2. You are considering two mutually exclusive financial opportunities. Project A requires an initial outlay of $100,000, offers $15,000 a year for twelve years, and has an expected residual value of $100,000 at the end year twelve. On the other hand, Project B has an initial cost of $150,000, offers $18,750 annually for twelve years, and has an expected residual value of $150,000 at the end of year twelve. a. Determine the range of MARR's (minimum acceptable rate of return) for which Project A is the better choice; b. Determine the range of MARR's for which Project B is the better choice; and c. Determine the range of MARR's for which neither of these is an acceptable option.