PROBLEM 1: Three mutually exclusive project design alternatives are being considered. The estimated sales and cost data for each alternative are the following: Project Design Alternatives A B C Investment/Initial Cost ($) 50,000 60,000 40,000 Production Capacity (quantity of units) 12,000 16,000 12,000 Selling Price ($ per unit) Variable Cost ($ per unit) Annual Expenses - Fixed Cost ($) 9,000 11,000 Residual Value ($) 10,000 0 Useful Life (years) T 10 10 If MARR=20%, which of the alternatives should you recommend? 3.50 1.40 3.50 1.10 5,000 12,000 10 3.50 1.50

MATLAB: An Introduction with Applications
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PROBLEM 1: Three mutually exclusive project design alternatives are being considered. The estimated sales and
cost data for each alternative are the following:
Project Design Alternatives
A
B
C
Investment/Initial Cost ($)
50,000
60,000
40,000
Production Capacity (quantity of units)
12,000
16,000
12,000
Selling Price ($ per unit)
Variable Cost ($ per unit)
Annual Expenses - Fixed Cost (S)
9,000
11,000
Residual Value ($)
10,000
0
Useful Life (years)
T
10
If MARR=20%, which of the alternatives should you recommend?
3.50
1.40
3.50
1.10
5,000
12,000
10
3.50
1.50
10
Transcribed Image Text:PROBLEM 1: Three mutually exclusive project design alternatives are being considered. The estimated sales and cost data for each alternative are the following: Project Design Alternatives A B C Investment/Initial Cost ($) 50,000 60,000 40,000 Production Capacity (quantity of units) 12,000 16,000 12,000 Selling Price ($ per unit) Variable Cost ($ per unit) Annual Expenses - Fixed Cost (S) 9,000 11,000 Residual Value ($) 10,000 0 Useful Life (years) T 10 If MARR=20%, which of the alternatives should you recommend? 3.50 1.40 3.50 1.10 5,000 12,000 10 3.50 1.50 10
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