A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be viable for only 10 years. If the company's MARR is 11% per year, determine which should be selected on the basis of a present worth analysis. The financial values are in $1000 units. A B First Cost $-1,100 $-2,500 $-4,900 $-5,900 Annual Net Income, per Year $175 $375 $1900 $1900 Salvage Value $7 $8 $8 $8 The present worth of project A is determined to be $ The present worth of project B is determined to be $ The present worth of project C is determined to be $ The present worth of project D is determined to be $ Project A is rejected
A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be viable for only 10 years. If the company's MARR is 11% per year, determine which should be selected on the basis of a present worth analysis. The financial values are in $1000 units. A B First Cost $-1,100 $-2,500 $-4,900 $-5,900 Annual Net Income, per Year $175 $375 $1900 $1900 Salvage Value $7 $8 $8 $8 The present worth of project A is determined to be $ The present worth of project B is determined to be $ The present worth of project C is determined to be $ The present worth of project D is determined to be $ Project A is rejected
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects
shown, all of which can be viable for only 10 years. If the company's MARR is 11% per year, determine which should be selected on the
basis of a present worth analysis. The financial values are in $1000 units.
A
B
First Cost
$-1,100
$-2,500
$-4,900
$-5,900
Annual Net Income, per Year
$175
$375
$1900
$1900
Salvage Value
$7
$8
$8
$8
The present worth of project A is determined to be $
The present worth of project B is determined to be $
The present worth of project C is determined to be $
The present worth of project D is determined to be $
Project A is rejected
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