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 Technology 2 19000 3230 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.
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 Technology 2 19000 3230 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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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