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Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the project: Project MARR = 10% Inflation is a constant 2% All Monies x $1K Alternatives 1A 2B 3C Capital Cost 200 225 300 Benefit (per Year) MOST OPT MOST OPT MOST OPT 120 100 200 10 15 190 100 225 11 17 225 140 300 15 20 100 150 200 Salvage N Useful Life (Years)

Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the project: Project MARR = 10% Inflation is a constant 2% All Monies x $1K Alternatives 1A 2B 3C Capital Cost 200 225 300 Benefit (per Year) MOST OPT MOST OPT MOST OPT 120 100 200 10 15 190 100 225 11 17 225 140 300 15 20 100 150 200 Salvage N Useful Life (Years)

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
Problem 1PS
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What is the MARR adjusted for inflation?

Calculate the Optimistic Value.

Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the project: Project MARR = 10% Inflation is a constant 2% All Monies x $IK Capital Cost Useful Life (Years) OPT MOST OPT Benefit Alternatives Salvage (per Year) MOST ОРТ MOST 1A 200 100 120 100 200 10 15 2B 225 150 190 100 225 11 17 30 300 200 225 140 300 15 20 Probabilities ?? OPTimistic 70% | MOST likely
Transcribed Image Text:Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the project: Project MARR = 10% Inflation is a constant 2% All Monies x $IK Capital Cost Useful Life (Years) OPT MOST OPT Benefit Alternatives Salvage (per Year) MOST ОРТ MOST 1A 200 100 120 100 200 10 15 2B 225 150 190 100 225 11 17 30 300 200 225 140 300 15 20 Probabilities ?? OPTimistic 70% | MOST likely
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