Fabrication committee to evaluate proposals for modification manufacturing system. Two proposals have been finalized and accepted for consideration with both proposals have a same capital investment $30,300. Both proposals able to give net saving and return to the company for 9 years because of less non-defective unit and the increase of productivity as shown in Figure la and 1b. Analyze which proposal have the best return of investment for 9 years. 12% per year compounded quarterly 20,000 20,000 20,000 9,000 9,000 이 9T years Proposal 1 Cash Flow Diagram 10% per year
Fabrication committee to evaluate proposals for modification manufacturing system. Two proposals have been finalized and accepted for consideration with both proposals have a same capital investment $30,300. Both proposals able to give net saving and return to the company for 9 years because of less non-defective unit and the increase of productivity as shown in Figure la and 1b. Analyze which proposal have the best return of investment for 9 years. 12% per year compounded quarterly 20,000 20,000 20,000 9,000 9,000 이 9T years Proposal 1 Cash Flow Diagram 10% per year
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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Transcribed Image Text:Fabrication committee to evaluate proposals for modification manufacturing system. Two
proposals have been finalized and accepted for consideration with both proposals have a
same capital investment $30,300. Both proposals able to give net saving and return to the
company for 9 years because of less non-defective unit and the increase of productivity as
shown in Figure la and 1b.
Analyze which proposal have the best return of investment for 9 years.
12% per year compounded quarterly
20,000
20,000
20,000
9,000
9,000
9T years
Proposal 1 Cash Flow Diagram 10% per year
compounded semi-annually
18,000 18,000
15,000 15,000 15,000
9т years
Proposal 2 Cash Flow Diagram
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