A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be viable for only 10 years. If the company's MARR is 14% per year, determine which should be selected on the basis of a present worth analysis. The financial values are in $1000 units. A B C First Cost Annual Net Income, per Year Salvage Value $-4,300 $1300 $-1,100 $-1,900 $-5,300 $1300 $250 $450 $5 $7 $6 $6 The present worth of project A is determined to be $ The present worth of project B is determined to be $ The present worth of project C is determined to be $ The present worth of project D is determined to be $

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
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Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 14P
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A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects
shown, all of which can be viable for only 10 years. If the company's MARR is 14% per year, determine which should be selected on the
basis of a present worth analysis. The financial values are in $1000 units.
A
B
C
D
First Cost
Annual Net Income, per Year
$-1,100
$-1,900
$450
$-4,300
$1300
$-5,300
$1300
$6
$250
Salvage Value
$5
$7
$6
The present worth of project A is determined to be $
The present worth of project B is determined to be $ |
The present worth of project C is determined to be $
The present worth of project D is determined to be $
Project A is (Click to select)
Project B is (Click to select)
Project C is (Click to select) -
Project D is (Click to select)
Transcribed Image Text:A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering the independent projects shown, all of which can be viable for only 10 years. If the company's MARR is 14% per year, determine which should be selected on the basis of a present worth analysis. The financial values are in $1000 units. A B C D First Cost Annual Net Income, per Year $-1,100 $-1,900 $450 $-4,300 $1300 $-5,300 $1300 $6 $250 Salvage Value $5 $7 $6 The present worth of project A is determined to be $ The present worth of project B is determined to be $ | The present worth of project C is determined to be $ The present worth of project D is determined to be $ Project A is (Click to select) Project B is (Click to select) Project C is (Click to select) - Project D is (Click to select)
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