PW of Project A is $100,000 PW of Project B is $150,000 PW of Project C is -$1,000 All of the...

Question:

PW of Project A is $100,000 PW of Project B is $150,000 PW of Project C is -$1,000 All of the projects are independent projects and are not mutually exclusive. Assuming that the budget is unlimited, which project(s) should be selected? A. Project A B. Projects A and C C. Project B D. Projects B and C E. Project C F. Projects A and B G. Projects A, B, and C

Mutually Exclusive Projects:

The mutually exclusive projects refer to a bundle of projects from which one of the projects should be selected for making an investment, which includes the lower implication of costs and excluding the remaining options.

Answer and Explanation:

The conditions given in this PW do not refer to mutually exclusive projects, as the projects are dependent on each other except Project C, which contains a negative value of PW. Therefore, Project A and Project B should be selected. (Correct answer: F)


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