4.39 Three alternatives to incorporate improved tech- niques to manufacture computer drives to play HD DVD optical disc formats have been developed and costed. Compare the alternatives below using capitalized cost and an interest rate of 12% per year compounded quarterly. Alternative Alternative Alternative E F First cost, $ -2,000,000 - 3,000,000 -10,000,000 Net income, S per quarter 300,000 100,000 400,000 Salvage value, $ 50,000 70,000 - Life, years 4 8.

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4.39 Three alternatives to incorporate improved tech-
niques to manufacture computer drives to play HD
DVD optical disc formats have been developed
and costed. Compare the alternatives below using
capitalized cost and an interest rate of 12% per
year compounded quarterly.
Alternative Alternative Alternative
F
E
G
First cost, $
-2,000,000
- 3,000,000 – 10,000,000
Net income,
S per quarter
300,000
100,000
400,000
Salvage value, $
50,000
70,000
Life, years
4
8.
8
Transcribed Image Text:4.39 Three alternatives to incorporate improved tech- niques to manufacture computer drives to play HD DVD optical disc formats have been developed and costed. Compare the alternatives below using capitalized cost and an interest rate of 12% per year compounded quarterly. Alternative Alternative Alternative F E G First cost, $ -2,000,000 - 3,000,000 – 10,000,000 Net income, S per quarter 300,000 100,000 400,000 Salvage value, $ 50,000 70,000 Life, years 4 8. 8
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