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Which of the FOUR designs do you recommend? In your supporting work, include the additional calculations you need to make this decision. Also, expl the reasoning for your decision.

Which of the FOUR designs do you recommend? In your supporting work, include the additional calculations you need to make this decision. Also, expl the reasoning for your decision.

Essentials Of Investments
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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Four alternative designs are being considered for a pet-exercising treadmillI. The company's MARR is 18%. The cash flows associated with each are given in the following table. The Judas The Lancelot The Bella The Lilo $120,000 $50,000 $130,000 $141,000 $50,000 $13,000 $18,000 Capital Investment $160,000 Annual Revenues Annual Expenses $50,000 $50,000 $20,000 $15,000 $14,000 $15,000 $15,000 Refurbish at EOY 5 $23,000 $4,000 $23,000 $4,000 Market Value after 10 years $5,000 IRR ??? 21.8% 21.6% 17.7%
Transcribed Image Text:Four alternative designs are being considered for a pet-exercising treadmillI. The company's MARR is 18%. The cash flows associated with each are given in the following table. The Judas The Lancelot The Bella The Lilo $120,000 $50,000 $130,000 $141,000 $50,000 $13,000 $18,000 Capital Investment $160,000 Annual Revenues Annual Expenses $50,000 $50,000 $20,000 $15,000 $14,000 $15,000 $15,000 Refurbish at EOY 5 $23,000 $4,000 $23,000 $4,000 Market Value after 10 years $5,000 IRR ??? 21.8% 21.6% 17.7%
Which of the FOUR designs do you recommend? In your supporting work, include the additional calculations you need to make this decision. Also, explain the reasoning for your decision. O The Judas O The Lancelot The Bella O The Lilo
Transcribed Image Text:Which of the FOUR designs do you recommend? In your supporting work, include the additional calculations you need to make this decision. Also, explain the reasoning for your decision. O The Judas O The Lancelot The Bella O The Lilo
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