The Mwatex Textile Company is considering two mutually exclusive electronic control systems for its texttile machines. The investment period is 6 years (equal lives), and the MARR is 18% per year. Data for the systems are given below. Based on the PW method, which alternative should the company select? Alternative X Y Capital Investment $7,000 $14,000 Net Annual Revenues $4,800 $6,400 A). The net PW of the alternative X is $19382. (Round to the nearest dollar.) OA. Alternative Y B. Alternative X The net PW of the alternative Y is $5187. (Round to the nearest dollar.) Which alternative should the company select? Choose the correct answer below.
The Mwatex Textile Company is considering two mutually exclusive electronic control systems for its texttile machines. The investment period is 6 years (equal lives), and the MARR is 18% per year. Data for the systems are given below. Based on the PW method, which alternative should the company select? Alternative X Y Capital Investment $7,000 $14,000 Net Annual Revenues $4,800 $6,400 A). The net PW of the alternative X is $19382. (Round to the nearest dollar.) OA. Alternative Y B. Alternative X The net PW of the alternative Y is $5187. (Round to the nearest dollar.) Which alternative should the company select? Choose the correct answer below.
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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Transcribed Image Text:B). What if the MARR was 8%, instead of 18%?
The net PW of the alternative X is $4412. (Round to the nearest
dollar.)
I
The net PW of the alternative Y is $8823. (Round to the nearest
dollar.)
Which alternative should the company select? Choose the correct
answer below.
A. Alternative X
B. Alternative Y
Transcribed Image Text:The Mwatex Textile Company is considering two mutually exclusive electronic
control systems for its texttile machines. The investment period is 6 years
(equal lives), and the MARR is 18% per year. Data for the systems are given
below. Based on the PW method, which alternative should the company
select?
Alternative
X
Y
x
Capital
Investment
$7,000
$14,000
OA. Alternative Y
B. Alternative X
...
A). The net PW of the alternative X is $ 19382. (Round to the nearest
dollar.)
Net Annual
Revenues
$4,800
$6,400
The net PW of the alternative Y is $5187. (Round to the nearest
dollar.)
Which alternative should the company select? Choose the correct
answer below.
B). What if the MARR was 8%, instead of 18%?
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