Speedy Delivery Incorporated is updating its delivery system control equipment. As the lead facilities engineering manager, you have to select the best option for the product line. Your team has researched the market and found four options but only the three shown below will meet the technical needs of the company. The company as a 6 year contract for their services and needs the equipment for all 6 years. The financial manager has told you that you need to consider MARR of 10% to meet company guidelines. You are not given any product profit and quantity information, since that is company confidential and held at very high levels in the company. So you can only make your decision on your cash flow/discount analysis. Based on discussions with senior management in your division, you have decided to use a present–worth criterion to make your recommendation. The options are shown below; pick the best option for the Company and be sure to justify your recommendation by using present worth criterion. You must show all of your calculations.
Speedy Delivery Incorporated is updating its delivery system control equipment. As the lead facilities
engineering manager, you have to select the best option for the product line. Your team has
researched the market and found four options but only the three shown below will meet the
technical needs of the company. The company as a 6 year contract for their services and needs the
equipment for all 6 years. The
to meet company guidelines. You are not given any product profit and quantity information, since
that is company confidential and held at very high levels in the company. So you can only make your
decision on your cash flow/discount analysis. Based on discussions with senior management in your
division, you have decided to use a present–worth criterion to make your recommendation. The
options are shown below; pick the best option for the Company and be sure to justify your
recommendation by using present worth criterion. You must show all of your calculations.
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