Analyze the following investment options @ R=3%, 7%, and 10% - show all work (including units). Show gross and net PV calculations (ROI not necessary): a. Incremental cost of $12,000; nets total savings of $14,400 in year 3. Incremental cost of $12,000; nets savings of $4,800 per year for 3 years. Incremental cost of $12,000; nets savings of $6,000 in year 1; returns $5,000 in year 2; returns $3,400 in year 3.1 a. a.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
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Analyze the following investment options @ R=3%, 7%, and 10% - show all work (including units).
Show gross and net PV calculations (ROI not necessary):
a.
a.
a.
Incremental cost of $12,000; nets total savings of $14,400 in year 3.
Incremental cost of $12,000; nets savings of $4,800 per year for 3 years.
Incremental cost of $12,000; nets savings of $6,000 in year 1; returns $5,000 in year 2; returns
$3,400 in year 3.
Transcribed Image Text:1. Analyze the following investment options @ R=3%, 7%, and 10% - show all work (including units). Show gross and net PV calculations (ROI not necessary): a. a. a. Incremental cost of $12,000; nets total savings of $14,400 in year 3. Incremental cost of $12,000; nets savings of $4,800 per year for 3 years. Incremental cost of $12,000; nets savings of $6,000 in year 1; returns $5,000 in year 2; returns $3,400 in year 3.
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