Problem 1 Four alternative designs are being considered for a pet-exercising treadmill. The company's MARR is 18%. The cash flows associated with each are given in the following table. The Judas The Lancelot The Bella The Lilo Capital Investment $130,000 $160,000 $50,000 $120,000 $50,000 $20,000 $23,000 $4,000 $141,000 Annual Revenues $50,000 $15,000 $23,000 $4,000 $50,000 $13,000 $18,000 $5,000 Annual Expenses $14,000 $15,000 $15,000 Refurbishment Cost at EOY 5 Market Value after 10 years IRR ??? 21.8% 21.6% 17.7% Here are various interest tables you can use to look up factor values. 10% Interest Table Table 12% Interest Table 15% Interest Table 18% Interest 20% Interest Table 25% Interest Table

Problem 1 Four alternative designs are being considered for a pet-exercising treadmill. The company's MARR is 18%. The cash flows associated with each are given in the following table. The Judas The Lancelot The Bella The Lilo Capital Investment $130,000 $160,000 $50,000 $120,000 $50,000 $20,000 $23,000 $4,000 $141,000 Annual Revenues $50,000 $15,000 $23,000 $4,000 $50,000 $13,000 $18,000 $5,000 Annual Expenses $14,000 $15,000 $15,000 Refurbishment Cost at EOY 5 Market Value after 10 years IRR ??? 21.8% 21.6% 17.7% Here are various interest tables you can use to look up factor values. 10% Interest Table Table 12% Interest Table 15% Interest Table 18% Interest 20% Interest Table 25% Interest Table

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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