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
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 13P
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