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A metal plating company is considering four different methods for recovering by-product heavy metals, from a manufacturing site's liquid waste. The investment costs and incomes associated with each method have been estimated. All methods have an 8-year life. The MARR is 11% per year. Method First Cost, $ Salvage Value, $ Annual Income. $/year -%$32.000 $1.000 $7.000 B -$36.000 $2.000 $5,000 -$41.000 $500 $9.000 D -$53.200 $2.000 $9.500 If the methods are independent. because they can be implemented at different plants, which ones are acceptable? Start your analysis by filling the cash flows for each method into the following tables. State your answers for IRR with a precision of two decimal points (example 7.82). МЕТНOD A МЕТНOD B (CASH FLOW) (CASH FLOW) 6,000 5.000 6.000 5,000 3 6,000 5,000 4 6,000 4. 5,000 5. 6.000 5.000 6. 6,000 5,000 6,000 7 5,000 8 8 IRR= IRR

A metal plating company is considering four different methods for recovering by-product heavy metals, from a manufacturing site's liquid waste. The investment costs and incomes associated with each method have been estimated. All methods have an 8-year life. The MARR is 11% per year. Method First Cost, $ Salvage Value, $ Annual Income. $/year -%$32.000 $1.000 $7.000 B -$36.000 $2.000 $5,000 -$41.000 $500 $9.000 D -$53.200 $2.000 $9.500 If the methods are independent. because they can be implemented at different plants, which ones are acceptable? Start your analysis by filling the cash flows for each method into the following tables. State your answers for IRR with a precision of two decimal points (example 7.82). МЕТНOD A МЕТНOD B (CASH FLOW) (CASH FLOW) 6,000 5.000 6.000 5,000 3 6,000 5,000 4 6,000 4. 5,000 5. 6.000 5.000 6. 6,000 5,000 6,000 7 5,000 8 8 IRR= IRR

Essentials Of Investments
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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Continue using the data given on the last question. State your answers for IRR with a precision of two decimal points (example 7.85). МЕТНOD C METHOD D (CASH (CASH FLOW) FLOW) 1. 9,000 1 9,500 2 9,000 9,500 3 9,000 3 9,500 4 9,000 4 9,500 9,000 5 9,500 6 9,000 9,500 9,000 7 9,500 8. 8. IRR IRR
Transcribed Image Text:Continue using the data given on the last question. State your answers for IRR with a precision of two decimal points (example 7.85). МЕТНOD C METHOD D (CASH (CASH FLOW) FLOW) 1. 9,000 1 9,500 2 9,000 9,500 3 9,000 3 9,500 4 9,000 4 9,500 9,000 5 9,500 6 9,000 9,500 9,000 7 9,500 8. 8. IRR IRR
A metal plating company is considering four different methods for recovering by-product heavy metals, from a manufacturing site's liquid waste. The investment costs and incomes associated with each method have been estimated. All methods have an 8-year life. The MARR is 11% per year. Method First Cost, $ Salvage Value, $ Annual Income, $/year A -$32,000 $1,000 $7,000 B -$36,000 $2,000 $5,000 -$41,000 $500 $9,000 -$53,200 $2,000 $9,500 If the methods are independent, because they can be implemented at different plants, which ones are acceptable? Start your analysis by filling the cash flows for each method into the following tables. State your answers for IRR with a precision of two decimal points (example 7.82). МЕТНOD A МЕТНOD B (CASH FLOW) (CASH FLOW) 6,000 5,000 2 6,000 5,000 6,000 3 5,000 4 6,000 5,000 5 6,000 5,000 6 6,000 5,000 7. 6,000 7 5,000 8 8 IRR= IRR= %
Transcribed Image Text:A metal plating company is considering four different methods for recovering by-product heavy metals, from a manufacturing site's liquid waste. The investment costs and incomes associated with each method have been estimated. All methods have an 8-year life. The MARR is 11% per year. Method First Cost, $ Salvage Value, $ Annual Income, $/year A -$32,000 $1,000 $7,000 B -$36,000 $2,000 $5,000 -$41,000 $500 $9,000 -$53,200 $2,000 $9,500 If the methods are independent, because they can be implemented at different plants, which ones are acceptable? Start your analysis by filling the cash flows for each method into the following tables. State your answers for IRR with a precision of two decimal points (example 7.82). МЕТНOD A МЕТНOD B (CASH FLOW) (CASH FLOW) 6,000 5,000 2 6,000 5,000 6,000 3 5,000 4 6,000 5,000 5 6,000 5,000 6 6,000 5,000 7. 6,000 7 5,000 8 8 IRR= IRR= %
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