A question in my course hasn't given us much to go on. I'm not sure if there is a specific model I could use to determine which project is the better one.
1st option costs 350.000, has a life expectancy of 7 years and the benefits it will provide have been evenly distributed. 2nd option has a cost of 450.000, a life expectancy of 11 years and the benefits have been similarly calculated.The company will borrow the amount at an annual rate of 3%. Which project should it select?