"Money is Yours" has recently been about two years ago in Mexico. Over this period, the business has been tripled, and the company's CEO is planning to expand the operation by moving to a larger facility. Four sites have been visited. Cash flows for each option have been recorded for the next nine years. If the minimum acceptable rate of return (MARR) is 12%, which project would you recommend to the "Money is Yours" CEO using Net present value (NPV) analysis Use the incremental net present value and show which project must be selected? EOY Project#1 Project#2 Project#3 Project#4 -80,000 -70,000 -85,000 -100,000 1-9 10,000 12,000 15,000 16,000

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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"Money is Yours" has recently been about two years ago in Mexico. Cver this period, the business has
been tripled, and the company's CEO is planning to expand the operation by moving to a larger
facility. Four sites have been visited. Cash flows for each option have been recorded for the next nine
years. If the minimum acceptable rate of return (MARR) is 12%, which project would you recomnmend
to the "Money is Yours" CEO using
Net present value (NPV) analysis
Use the incremental net present value and show which project must be selected?
EOY
Project#1
Project#2
Project#3
Project#4
-80,000
-70,000
-85,000
-100,000
1-9
10,000
12,000
15,000
16,000
Transcribed Image Text:"Money is Yours" has recently been about two years ago in Mexico. Cver this period, the business has been tripled, and the company's CEO is planning to expand the operation by moving to a larger facility. Four sites have been visited. Cash flows for each option have been recorded for the next nine years. If the minimum acceptable rate of return (MARR) is 12%, which project would you recomnmend to the "Money is Yours" CEO using Net present value (NPV) analysis Use the incremental net present value and show which project must be selected? EOY Project#1 Project#2 Project#3 Project#4 -80,000 -70,000 -85,000 -100,000 1-9 10,000 12,000 15,000 16,000
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