Vita Pharmaceutical Co. is considering four proposals for the expansion of its dietary supplements production facility. The investment requirements and the cash flows for an 8-year period are presented below. P1 P2 P3 P4 Initial Investment P13M P14.5M P15M P15.8M Annual Receipts 1.5M 1.6M 1.7M 2.2M Annual Disbursements 0.7M 0.5M 0.65M 0.7M Salvage Value 1.3М 1.5M 2M 2.5M Determine the best alternative if the company applies a 14% MARR for its investments. (Ans. Concidor DA: i.. - 12 270. 1..-5 010%. 1..-21 760)

Vita Pharmaceutical Co. is considering four proposals for the expansion of its dietary supplements production facility. The investment requirements and the cash flows for an 8-year period are presented below. P1 P2 P3 P4 Initial Investment P13M P14.5M P15M P15.8M Annual Receipts 1.5M 1.6M 1.7M 2.2M Annual Disbursements 0.7M 0.5M 0.65M 0.7M Salvage Value 1.3М 1.5M 2M 2.5M Determine the best alternative if the company applies a 14% MARR for its investments. (Ans. Concidor DA: i.. - 12 270. 1..-5 010%. 1..-21 760)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 3E

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