Hydroflask is considering two new cap options for their water bottles. Using the table below, which cap would you recommend pursuing? Why? Сap 2 $ 1,195,000 $ 1,800,000 325,500 $ Сap 1 Initial Investment Year 1 Profit 302,000 Annual Profit Increase 4% 8% Project Life 5 8 MARR 13% 13%

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Hydroflask is considering two new cap options for their water bottles. Using the table below, which
cap would you recommend pursuing? Why?
Сap 1
Сap 2
Initial Investment
$ 1,195,000 $ 1,800,000
Year 1 Profit
$
325,500 $
302,000
Annual Profit Increase
4%
8%
Project Life
5
8
MARR
13%
13%
Transcribed Image Text:Hydroflask is considering two new cap options for their water bottles. Using the table below, which cap would you recommend pursuing? Why? Сap 1 Сap 2 Initial Investment $ 1,195,000 $ 1,800,000 Year 1 Profit $ 325,500 $ 302,000 Annual Profit Increase 4% 8% Project Life 5 8 MARR 13% 13%
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