A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projectsshown, all of which can be viable for only 10 years. If the company's MARR is 14% per year, determine which should be selected on thebasis of a present worth analysis. The financial values are in $1000 units.ABCDFirst CostAnnual Net Income, per Year$-1,100$-1,900$450$-4,300$1300$-5,300$1300$6$250Salvage Value$5$7$6The 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 (Click to select)Project B is (Click to select)Project C is (Click to select) -Project D is (Click to select)

PW=-P+A(P/A,i,n)+F(P/F,i,n)where,PW=Present WorthP=The initial costA=Amount of annual net…

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 14% per year, determine which should be selected on the basis of a present worth analysis. The financial values are in $1000 units. A B C First Cost Annual Net Income, per Year Salvage Value $-4,300 $1300 $-1,100 $-1,900 $-5,300 $1300 $250 $450 $5 $7 $6 $6 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 $

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 14% per year, determine which should be selected on the basis of a present worth analysis. The financial values are in $1000 units. A B C First Cost Annual Net Income, per Year Salvage Value $-4,300 $1300 $-1,100 $-1,900 $-5,300 $1300 $250 $450 $5 $7 $6 $6 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 $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

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 14% per year, determine which should be selected on the
basis of a present worth analysis. The financial values are in $1000 units.
A
B
C
D
First Cost
Annual Net Income, per Year
$-1,100
$-1,900
$450
$-4,300
$1300
$-5,300
$1300
$6
$250
Salvage Value
$5
$7
$6
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 (Click to select)
Project B is (Click to select)
Project C is (Click to select) -
Project D is (Click to select)

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