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Galfar Industries is planning to modernize its production facility. The company has identified three different technologies which could help them meet this goal. The cash flows associated with these three technologies are summarized in Table 4. Initial Outlay (RO) | Annual Revenue Expected Project Life (in years) (RO) Technology 1 19000 3230 9. Technology 2 23000 3220 14 Technology 3 42000 6720 11 Table 4 (a) Evaluate each of the three technologies based on the present worth method of comparison assuming 11% interest rate compounded semi-annually. Based upon the evaluation suggest the best technology which is to be implemented. (b) Determine the best alternative for the company if the alternatives are compared based on future worth method, if the annual interest rate is 11% and the interest is compounded every quarter of a year.

Galfar Industries is planning to modernize its production facility. The company has identified three different technologies which could help them meet this goal. The cash flows associated with these three technologies are summarized in Table 4. Initial Outlay (RO) | Annual Revenue Expected Project Life (in years) (RO) Technology 1 19000 3230 9. Technology 2 23000 3220 14 Technology 3 42000 6720 11 Table 4 (a) Evaluate each of the three technologies based on the present worth method of comparison assuming 11% interest rate compounded semi-annually. Based upon the evaluation suggest the best technology which is to be implemented. (b) Determine the best alternative for the company if the alternatives are compared based on future worth method, if the annual interest rate is 11% and the interest is compounded every quarter of a year.

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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Task 4 (Comparison of Alternative Assessments) Galfar Industries is planning to modernize its production facility. The company has identified three different technologies which could help them meet this goal. The cash flows associated with these three technologies are summarized in Table 4. Initial Outlay (RO) Annual Revenue Expected Project Life (RO) (in years) Technology 1 19000 3230 9. Technology 2 23000 3220 14 Technology 3 42000 6720 11 Table 4 (a) Evaluate each of the three technologies based on the present worth method of comparison assuming 11% interest rate compounded semi-annually. Based upon the evaluation suggest the best technology which is to be implemented. (b) Determine the best alternative for the company if the alternatives are compared based on future worth method, if the annual interest rate is 11% and the interest is compounded every quarter of a year.
Transcribed Image Text:Task 4 (Comparison of Alternative Assessments) Galfar Industries is planning to modernize its production facility. The company has identified three different technologies which could help them meet this goal. The cash flows associated with these three technologies are summarized in Table 4. Initial Outlay (RO) Annual Revenue Expected Project Life (RO) (in years) Technology 1 19000 3230 9. Technology 2 23000 3220 14 Technology 3 42000 6720 11 Table 4 (a) Evaluate each of the three technologies based on the present worth method of comparison assuming 11% interest rate compounded semi-annually. Based upon the evaluation suggest the best technology which is to be implemented. (b) Determine the best alternative for the company if the alternatives are compared based on future worth method, if the annual interest rate is 11% and the interest is compounded every quarter of a year.
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