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HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / monthicompounded quarterly and 10 years life, which should be selected based on the Rate-of-Return evaluation for multiple alternatives: D A 111.000 6.300 First Cant Monthly c $1,000 $4000 5.000 131,000 4,200 4.100 54.800 $3,000 $1,900 Income every years 12.500 13,100 11,000 10.200 (a) PW for project A: E.C. Q.C (b) PW comparison If they are Independent: Take Project Find Cat Income every Compare to Equation: PW- Take project PW- HW-Chp-8-1-continued :(b) PW comparison If they are mutually exclusive: Take only Project First C O.C. Income every Compart Iner.F..C. Incr .O.C. Incr. Inc. every Equation: P Take project

HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / monthicompounded quarterly and 10 years life, which should be selected based on the Rate-of-Return evaluation for multiple alternatives: D A 111.000 6.300 First Cant Monthly c $1,000 $4000 5.000 131,000 4,200 4.100 54.800 $3,000 $1,900 Income every years 12.500 13,100 11,000 10.200 (a) PW for project A: E.C. Q.C (b) PW comparison If they are Independent: Take Project Find Cat Income every Compare to Equation: PW- Take project PW- HW-Chp-8-1-continued :(b) PW comparison If they are mutually exclusive: Take only Project First C O.C. Income every Compart Iner.F..C. Incr .O.C. Incr. Inc. every Equation: P Take project

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 15PROB
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HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / month/compounded quarterly and 10 years life, which should be selected based on the Rate-of-Return evaluation for multiple alternatives: Project H D 131,000 First Cont Monthly cont annual Income 111.000 6,300 $4.000 5.000 89,000 4,100 4,200 54,800 53,600 $1,900 Income every years 12.500 13,100 11,000 10.200 (a) PW for project A: Q.C. is every (b) PW comparison If they are Independent: Take Project First Cost OC- Income Income every Compare to Equation: PW Take project PW- HW-Chp-8-1-continued.:(b) PW comparison If they are mutually exclusive: Take only Project First Cast O.C Income Income every Compare to Incr.F.C. Inc.O.C. Incr. Income Incr.lac. every Equation: PW- Take project
Transcribed Image Text:HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / month/compounded quarterly and 10 years life, which should be selected based on the Rate-of-Return evaluation for multiple alternatives: Project H D 131,000 First Cont Monthly cont annual Income 111.000 6,300 $4.000 5.000 89,000 4,100 4,200 54,800 53,600 $1,900 Income every years 12.500 13,100 11,000 10.200 (a) PW for project A: Q.C. is every (b) PW comparison If they are Independent: Take Project First Cost OC- Income Income every Compare to Equation: PW Take project PW- HW-Chp-8-1-continued.:(b) PW comparison If they are mutually exclusive: Take only Project First Cast O.C Income Income every Compare to Incr.F.C. Inc.O.C. Incr. Income Incr.lac. every Equation: PW- Take project
HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / month/compounded quarterly and 10 years life, which should be selected based on the Rate-of-Return evaluation for multiple alternatives: Project H D 131,000 First Cont Monthly cont annual Income 111.000 6,300 $4.000 5.000 89,000 4,100 4,200 54,800 53,600 $1,900 Income every years 12.500 13,100 11,000 10.200 (a) PW for project A: Q.C. is every (b) PW comparison If they are Independent: Take Project First Cost OC- Income Income every Compare to Equation: PW Take project PW- HW-Chp-8-1-continued.:(b) PW comparison If they are mutually exclusive: Take only Project First Cast O.C Income Income every Compare to Incr.F.C. Inc.O.C. Incr. Income Incr.lac. every Equation: PW- Take project
Transcribed Image Text:HW-Chp-8-1: A company is considering the following projects. If the MARR is 1 % / month/compounded quarterly and 10 years life, which should be selected based on the Rate-of-Return evaluation for multiple alternatives: Project H D 131,000 First Cont Monthly cont annual Income 111.000 6,300 $4.000 5.000 89,000 4,100 4,200 54,800 53,600 $1,900 Income every years 12.500 13,100 11,000 10.200 (a) PW for project A: Q.C. is every (b) PW comparison If they are Independent: Take Project First Cost OC- Income Income every Compare to Equation: PW Take project PW- HW-Chp-8-1-continued.:(b) PW comparison If they are mutually exclusive: Take only Project First Cast O.C Income Income every Compare to Incr.F.C. Inc.O.C. Incr. Income Incr.lac. every Equation: PW- Take project
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