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Egyptat Telecom is considering two projects for expansion of a well-known system. Both alternatives are summarized below. Egyptsat's MARR is 0.08 per year for such projects, and repeatability may be assumed. Expansion Project A B Capital Investment 1001000 1250000 Annual Revenue 761400 580700 Annual Expenses 500200 359900 Useful Life 5 8 Salvage Value 100000 150000 a) what is the LCM? b) Calculate AW(A)= C) Calculate AW(B) = d) which alternative should you recommend to Egyptsat Telecom? (1 or 2)

Egyptat Telecom is considering two projects for expansion of a well-known system. Both alternatives are summarized below. Egyptsat's MARR is 0.08 per year for such projects, and repeatability may be assumed. Expansion Project A B Capital Investment 1001000 1250000 Annual Revenue 761400 580700 Annual Expenses 500200 359900 Useful Life 5 8 Salvage Value 100000 150000 a) what is the LCM? b) Calculate AW(A)= C) Calculate AW(B) = d) which alternative should you recommend to Egyptsat Telecom? (1 or 2)

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
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Egyptat Telecom is considering two projects for expansion of a well-known system. Both alternatives are summarized below. Egyptsat's MARR is 0.08 per year for such projects, and repeatability may be assumed. Expansion Project A B Capital Investment 1001000 1250000 Annual Revenue 761400 580700 Annual Expenses 500200 359900 Useful Life 5 8 Salvage Value 100000 150000 a) what is the LCM? b) Calculate AW(A) = ) Calculate AW(B) = d) which alternative should you recommend to Egyptsat Telecom? (1 or 2)
Transcribed Image Text:Egyptat Telecom is considering two projects for expansion of a well-known system. Both alternatives are summarized below. Egyptsat's MARR is 0.08 per year for such projects, and repeatability may be assumed. Expansion Project A B Capital Investment 1001000 1250000 Annual Revenue 761400 580700 Annual Expenses 500200 359900 Useful Life 5 8 Salvage Value 100000 150000 a) what is the LCM? b) Calculate AW(A) = ) Calculate AW(B) = d) which alternative should you recommend to Egyptsat Telecom? (1 or 2)
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