An investment company is considering 6 different independent, divisible investments. The 6 investments are being considered over a 8 year horizon using a MARR of 15%. The initial investment cost, annual savings, and salvage values are given for each of the projects below: 3 Initial $30,000 $35,000 $30,000 $15,000 $25,000 $23,000 investment Annual $7,000 $11.000 $12.000 $5,300 $10,000 $10,000 Returns Salvage Value $9.500 $22,000 $8,500 $3.000 $1.500 $1.000 The company's investment budget is $60,000. At what level should the company pursue each investment (expressed as a decimal between O and 1), and what will be its total present worth when it pursues these investments? Click here to access the TVM Factor Table calculator. level The company should pursue the 1st investment at level The company should pursue the 2nd investment at level The company should pursue the 3rd investment at level The compaoy should puursue the 4th investment at
An investment company is considering 6 different independent, divisible investments. The 6 investments are being considered over a 8 year horizon using a MARR of 15%. The initial investment cost, annual savings, and salvage values are given for each of the projects below: 3 Initial $30,000 $35,000 $30,000 $15,000 $25,000 $23,000 investment Annual $7,000 $11.000 $12.000 $5,300 $10,000 $10,000 Returns Salvage Value $9.500 $22,000 $8,500 $3.000 $1.500 $1.000 The company's investment budget is $60,000. At what level should the company pursue each investment (expressed as a decimal between O and 1), and what will be its total present worth when it pursues these investments? Click here to access the TVM Factor Table calculator. level The company should pursue the 1st investment at level The company should pursue the 2nd investment at level The company should pursue the 3rd investment at level The compaoy should puursue the 4th investment at
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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