Robust Ventures is planning to expand its production operation. It has identified three different technologies for meeting the goal. The initial investment and annual revenues with respect to each of the technologies are summarized in table below. Suggest the best technology which is to be implemented based on the future worth method of comparison assuming 20% interest rate, compounded annually. Initial Annual Life Investment Revenue (years) (Php) (Php) Technology X 1,200,000 400,000 10 Technology Y 2,000,000 600,000 10 Technology Z 1,800,000 500,000 10 a. Technology X since it has the highest revenue. O b. Technology X since it is the least costly. O c. Technology Z since it has the highest revenue. O d. Technology Y since it has the highest revenue.
Robust Ventures is planning to expand its production operation. It has identified three different technologies for meeting the goal. The initial investment and annual revenues with respect to each of the technologies are summarized in table below. Suggest the best technology which is to be implemented based on the future worth method of comparison assuming 20% interest rate, compounded annually. Initial Annual Life Investment Revenue (years) (Php) (Php) Technology X 1,200,000 400,000 10 Technology Y 2,000,000 600,000 10 Technology Z 1,800,000 500,000 10 a. Technology X since it has the highest revenue. O b. Technology X since it is the least costly. O c. Technology Z since it has the highest revenue. O d. Technology Y since it has the highest revenue.
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 15P
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