To determine which proposal(s) to select, we need to compare the present worth or net present value (NPV) of each proposal. The NPV represents the difference between the present value of cash inflows and outflows for each proposal.
For independent proposals at MARR = 15.5% per year:
Calculate the NPV for each proposal using the cash inflows and outflows and discounting them to present value using the MARR of 15.5%.
Select the proposal(s) with a positive NPV. Positive NPV indicates that the project's expected cash inflows exceed the initial investment and the MARR.
For mutually exclusive proposals at MARR = 10% per year:
Calculate the NPV for each proposal using the cash inflows and outflows and discounting them to present value using the MARR of 10%.
Select the proposal with the highest positive NPV. The proposal with the highest positive NPV indicates the project that generates the highest expected return or value relative to the MARR.
For mutually exclusive proposals at MARR = 14% per year:
Calculate the NPV for each proposal using the cash inflows and outflows and discounting them to present value using the MARR of 14%.
Select the proposal with the highest positive NPV. The proposal with the highest positive NPV indicates the project that generates the highest expected return or value relative to the MARR.
It's important to note that the specific details of the proposals, including cash inflows, outflows, and timing, are needed to calculate the NPV accurately. Without this information, it is not possible to provide a definitive answer.