Estimate the Benefit, Salvage Value, and Useful Life for each alternative. Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the project: Project MARR = 10% Inflation is a constant 2% All Monies x $IK Capital Cost Useful Life (Years) OPT MOST OPT Benefit Alternatives Salvage (per Year) MOST ОРТ MOST 1A 200 100 120 100 200 10 15 2B 225 150 190 100 225 11 17 30 300 200 225 140 300 15 20 Probabilities ?? OPTimistic 70% | MOST likely

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Chapter11: Capital Budgeting Decisions
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Estimate the Benefit, Salvage Value, and Useful Life for each alternative.
Transcribed Image Text:Estimate the Benefit, Salvage Value, and Useful Life for each alternative.
Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage
debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the
project:
Project MARR = 10%
Inflation is a constant 2%
All Monies x $IK
Capital
Cost
Useful Life
(Years)
OPT MOST OPT
Benefit
Alternatives
Salvage
(per Year)
MOST
ОРТ
MOST
1A
200
100
120
100
200
10
15
2B
225
150
190
100
225
11
17
30
300
200
225
140
300
15
20
Probabilities
??
OPTimistic
70% | MOST likely
Transcribed Image Text:Harry Broderick (HB) owns Jettison Scrap and Salvage Company (JSSC). HB wants to buy a ship to salvage debris from the Great Pacific Garbage Patch for 5 years then quit. The following are projections for the project: Project MARR = 10% Inflation is a constant 2% All Monies x $IK Capital Cost Useful Life (Years) OPT MOST OPT Benefit Alternatives Salvage (per Year) MOST ОРТ MOST 1A 200 100 120 100 200 10 15 2B 225 150 190 100 225 11 17 30 300 200 225 140 300 15 20 Probabilities ?? OPTimistic 70% | MOST likely
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