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1)what is the best project based on simple payback 2) What is the best project based on discounted payback 3)What is beta B/C ratio 4) What is gammas B/C ratio

1)what is the best project based on simple payback 2) What is the best project based on discounted payback 3)What is beta B/C ratio 4) What is gammas B/C ratio

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1)what is the best project based on simple payback

2) What is the best project based on discounted payback

3)What is beta B/C ratio

4) What is gammas B/C ratio

The Pure Flour Company is analyzing the purchase of additional plansifters to meet increased flour sales during the COVID-19 pandemic. The key parameters of three plansifters under scrutiny are provided below. Parameters 1. Initial Cost ($) Alpha $310,000 Beta 425,000 $196,000 at ΕΟΥ1 Gamma 440,000 $450,000 at ΕΟΥ1 $140,000 at EOY1 increasing by 3% annually thereafter decreasing by $2,000 annually thereafter 2. Revenues ($) $100,000 at EOY1 increasing by $3,000 annually thereafter decreasing by 2% annually thereafter $375,000 at ΕΟΥ1 decreasing by $10,000 annually thereafter $60,000 at EOY1 increasing by $1,000 annually thereafter 3. Operating Costs ($) 4. End-of-life $0 salvage value ($) 5. Useful life (years) $20,000 ($15,000) 5 years 10 years 10 years • All parameter values are fictitious. • EOY = End-of-year • Industry Standard = 4 years MARR = 10% %3D ($) = negative dollar value
Transcribed Image Text:The Pure Flour Company is analyzing the purchase of additional plansifters to meet increased flour sales during the COVID-19 pandemic. The key parameters of three plansifters under scrutiny are provided below. Parameters 1. Initial Cost ($) Alpha $310,000 Beta 425,000 $196,000 at ΕΟΥ1 Gamma 440,000 $450,000 at ΕΟΥ1 $140,000 at EOY1 increasing by 3% annually thereafter decreasing by $2,000 annually thereafter 2. Revenues ($) $100,000 at EOY1 increasing by $3,000 annually thereafter decreasing by 2% annually thereafter $375,000 at ΕΟΥ1 decreasing by $10,000 annually thereafter $60,000 at EOY1 increasing by $1,000 annually thereafter 3. Operating Costs ($) 4. End-of-life $0 salvage value ($) 5. Useful life (years) $20,000 ($15,000) 5 years 10 years 10 years • All parameter values are fictitious. • EOY = End-of-year • Industry Standard = 4 years MARR = 10% %3D ($) = negative dollar value
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