Problem 3 A metal plating company on government contract is considering four different methods for recovering by-product heavy metals from a processing site's liquid waste. The investment costs and annual net incomes associated with each method have been estimated. All methods have an 8-year life; the MARR is 11% per year; and an AW-based ROR analysis is required by the government agency prior to final selection. Select the economically best one. Use the RATE() function in Excel to solve this problem. Annual Income, Salvage Method First Cost, $ Value, $ $/Year A 30,000 1,000 4,000 B 36,000 2,000 5,000 C 41,000 500 8,000 Ꭰ 53,000 -2,000 10,500
Problem 3 A metal plating company on government contract is considering four different methods for recovering by-product heavy metals from a processing site's liquid waste. The investment costs and annual net incomes associated with each method have been estimated. All methods have an 8-year life; the MARR is 11% per year; and an AW-based ROR analysis is required by the government agency prior to final selection. Select the economically best one. Use the RATE() function in Excel to solve this problem. Annual Income, Salvage Method First Cost, $ Value, $ $/Year A 30,000 1,000 4,000 B 36,000 2,000 5,000 C 41,000 500 8,000 Ꭰ 53,000 -2,000 10,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 3 A metal plating company on government contract is considering four different
methods for recovering by-product heavy metals from a processing site's liquid waste. The
investment costs and annual net incomes associated with each method have been estimated.
All methods have an 8-year life; the MARR is 11% per year; and an AW-based ROR analysis
is required by the government agency prior to final selection. Select the economically best one.
Use the RATE() function in Excel to solve this problem.
Annual Income,
Salvage
Method
First Cost, $
Value, $
$/Year
A
30,000
1,000
4,000
B
36,000
2,000
5,000
C
41,000
500
8,000
Ꭰ
53,000
-2,000
10,500
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