The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company's MARR of 12% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis? Project Initial Investment Operating Cost, per Year Revenue, per Year Salvage Value Life A B D $-200 $-300 $-130 $250 $22 $-660 $-400 $475 $0 5 years $-820 $-900 $-70 $325 $10 $-370 $550 $90 $-770 $825 $40 3 years 10 years 8 years 4 years The present worth of project A is $ The present worth of project B is $ The present worth of project C is $

The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company's MARR of 12% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis? Project Initial Investment Operating Cost, per Year Revenue, per Year Salvage Value Life A B D $-200 $-300 $-130 $250 $22 $-660 $-400 $475 $0 5 years $-820 $-900 $-70 $325 $10 $-370 $550 $90 $-770 $825 $40 3 years 10 years 8 years 4 years The present worth of project A is $ The present worth of project B is $ The present worth of project C is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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