What would you do if economic lives of the projects were unequal? Research, Explain and Make some suggestions based on the assumption that the projects picture are mutually exclusive
What would you do if economic lives of the projects were unequal? Research, Explain and Make some suggestions based on the assumption that the projects picture are mutually exclusive
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
What would you do if economic lives of the projects were unequal? Research, Explain and Make
some suggestions based on the assumption that the projects picture are mutually exclusive.
![5950000
1550000
Year 2
2900000
Year 3
4400000
Year 4
-1400000
Year 5
8100000
5150000
Year 6
8100000
13250000
Payback period potline 7B
NPV potline 7B
IRR potline 7B
4.36
3.594 425.21
19.15%
Independent
Reject
Acсеpt
Accept
Potline 7B
because it is more than 4 years
Раyback period
NPV
4.36
3,594,425.21
19.15%
because it is positive
because it is higher than 11.90%
IRR
Mutually exclusive
Reject
Reject
Potline 7B
because it is more than4 years
Payback period
NPV
4.36
because it is less that potline 7A
because it is less that potline 7A
3,594,425.21
IRR
19.15%
Reject
Potline 7B
Initial Outlay
Profitability Index
Mutually exclusive
Rank
16950000
1.21
Reject
2nd
because it is less that potline 7A](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2207c04a-98de-4f80-9cf7-3742b9f6a36e%2F75b94991-06a5-4d7c-a308-a0776053c699%2F7temyq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5950000
1550000
Year 2
2900000
Year 3
4400000
Year 4
-1400000
Year 5
8100000
5150000
Year 6
8100000
13250000
Payback period potline 7B
NPV potline 7B
IRR potline 7B
4.36
3.594 425.21
19.15%
Independent
Reject
Acсеpt
Accept
Potline 7B
because it is more than 4 years
Раyback period
NPV
4.36
3,594,425.21
19.15%
because it is positive
because it is higher than 11.90%
IRR
Mutually exclusive
Reject
Reject
Potline 7B
because it is more than4 years
Payback period
NPV
4.36
because it is less that potline 7A
because it is less that potline 7A
3,594,425.21
IRR
19.15%
Reject
Potline 7B
Initial Outlay
Profitability Index
Mutually exclusive
Rank
16950000
1.21
Reject
2nd
because it is less that potline 7A
![Year 3
Year 4
Year 5
3900000
-2400000
3900000
1500000
3900000
3900000
5400000
Year 6
9300000
Payback period potline 7C
NPV potline 7C
IRR potline 7C
3.62
1,980,004.19
16.72%
Potline 7C
Payback period
NPV
Independent
3.62
Аcсеpt
Accept
because it is less than 4years
1,980,004.19
because it is positive
because it is higher than 11.90%
IRR
16.72%
Acсept
Potline 7C
Payback period
NPV
Mutually exclusive
3.62
Ассept
because it is less than 4 years
Reject
Reject
because it is less that potline 7A
because it is less that potline 7A
1,980,004.19
IRR
16.72%
Potline 70
Initial Outlay
Profitability Index
Mutually exclusive
Rank
14100000
1.14
Reject
because it is less that potline 7A
3rd](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2207c04a-98de-4f80-9cf7-3742b9f6a36e%2F75b94991-06a5-4d7c-a308-a0776053c699%2Fehke7jt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Year 3
Year 4
Year 5
3900000
-2400000
3900000
1500000
3900000
3900000
5400000
Year 6
9300000
Payback period potline 7C
NPV potline 7C
IRR potline 7C
3.62
1,980,004.19
16.72%
Potline 7C
Payback period
NPV
Independent
3.62
Аcсеpt
Accept
because it is less than 4years
1,980,004.19
because it is positive
because it is higher than 11.90%
IRR
16.72%
Acсept
Potline 7C
Payback period
NPV
Mutually exclusive
3.62
Ассept
because it is less than 4 years
Reject
Reject
because it is less that potline 7A
because it is less that potline 7A
1,980,004.19
IRR
16.72%
Potline 70
Initial Outlay
Profitability Index
Mutually exclusive
Rank
14100000
1.14
Reject
because it is less that potline 7A
3rd
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