The capital fund for new investment at Systems Corporation is limited to $75,000 for next year. You have been asked to recommend one or more of three projects as economically acceptable for investment at the corporate MARR of 15% per year. Perform the analysis in two ways: (a) by hand, and (b) using NPV functions and a spreadsheet. Initial Annual NCF, Life, Salvage Project Investment, $ $/Year Years Value, $ A −25,000 6,000 4 4,000 B −30,000 9,000 4 −1,000 C −50,000 15,000 4 20,000
The capital fund for new investment at Systems Corporation is limited to $75,000 for next year. You have been asked to recommend one or more of three projects as economically acceptable for investment at the corporate MARR of 15% per year. Perform the analysis in two ways: (a) by hand, and (b) using NPV functions and a spreadsheet. Initial Annual NCF, Life, Salvage Project Investment, $ $/Year Years Value, $ A −25,000 6,000 4 4,000 B −30,000 9,000 4 −1,000 C −50,000 15,000 4 20,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The capital fund for new investment at Systems
Corporation is limited to $75,000 for next year.
You have been asked to recommend one or more of
three projects as economically acceptable for investment
at the corporate MARR of 15% per year.
Perform the analysis in two ways: (a) by hand, and
(b) using
Initial Annual NCF, Life, Salvage
Project Investment, $ $/Year Years Value, $
A −25,000 6,000 4 4,000
B −30,000 9,000 4 −1,000
C −50,000 15,000 4 20,000
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