Question 2 Your rubber duck company is considering adding a new bath toy product line, and they have two material alternatives: rubber and plastic. The expected costs and revenues for each alternative are given below, as well as the useful lives of the manufacturing equipment. Use a study period of 6 years, the cotermination assumptions, and a MARR of 9%. Plastic: Initial investment: $80,000 Annual cost: $29,000 Annual revenue: $88,000 Salvage value: $16,000 Useful life: 6 years What is the present worth of the plastic alternative? Typed numeric answer will be automatically saved.
Question 2 Your rubber duck company is considering adding a new bath toy product line, and they have two material alternatives: rubber and plastic. The expected costs and revenues for each alternative are given below, as well as the useful lives of the manufacturing equipment. Use a study period of 6 years, the cotermination assumptions, and a MARR of 9%. Plastic: Initial investment: $80,000 Annual cost: $29,000 Annual revenue: $88,000 Salvage value: $16,000 Useful life: 6 years What is the present worth of the plastic alternative? Typed numeric answer will be automatically saved.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 2
Your rubber duck company is considering adding a new bath toy
product line, and they have two material alternatives: rubber and
plastic. The expected costs and revenues for each alternative are
given below, as well as the useful lives of the manufacturing
equipment. Use a study period of 6 years, the cotermination
assumptions, and a MARR of 9%.
Plastic:
Initial investment: $80,000
Annual cost: $29,000
Annual revenue: $88,000
Salvage value: $16,000
Useful life: 6 years
What is the present worth of the plastic alternative?
Typed numeric answer will be automatically saved.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7538180c-5348-4d54-a5c1-c840ed6fc5b5%2F4b87b6fa-7a1c-44b9-adb2-0603ddc12f41%2F6gofmpo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 2
Your rubber duck company is considering adding a new bath toy
product line, and they have two material alternatives: rubber and
plastic. The expected costs and revenues for each alternative are
given below, as well as the useful lives of the manufacturing
equipment. Use a study period of 6 years, the cotermination
assumptions, and a MARR of 9%.
Plastic:
Initial investment: $80,000
Annual cost: $29,000
Annual revenue: $88,000
Salvage value: $16,000
Useful life: 6 years
What is the present worth of the plastic alternative?
Typed numeric answer will be automatically saved.
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