MANAGEMENT OF TECHNOLOGY Project Selection Based on Economic Analysis 0.1 = MARR' Technology "A" Year Cost Income Net NPV IRR 0 -$650,000 $0 -$650,000 $148,621 17% 1 $0 $125,000 $125,000 2 $0 $175,000 $175,000 3 -$275,000 $300,000 $25,000 4 $0 $400,000 $400,000 5 $200,000 $200,000 $400,000 Technology "B" Year Cost Income Net NPV IRR 0 -$750,000 $0 1 $0 $175,000 2 $0 $200,000 3 -$370,000 $225,000 4 $0 $375,000 5 $300,000 $350,000 Technology "C" Year Cost Income Net NPV IRR 0 -$808,300 $0 1 $0 $200,000 2 $0 $225,000 3 -$265,000 $250,000 4 $0 $400,000 5 $202,000 $325,000 Increment B-A Year Cost Income Net NPV IRR 0 -$100,000 $0 -$100,000 -$23,453 5% 1 $0 $50,000 $50,000 2 $0 $25,000 $25,000 3 -$95,000 -$75,000 -$170,000 4 $0 -$25,000 -$25,000 5 $100,000 $150,000 $250,000 Increment C-A Year Cost Income Net NPV IRR 0 -$158,300 $0 1 $0 $75,000 2 $0 $50,000 3 $10,000 -$50,000 4 $0 $0 5 $2,000 $125,000 complete the spread sheet

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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MANAGEMENT OF TECHNOLOGY Project Selection Based on Economic Analysis 0.1 = MARR' Technology "A" Year Cost Income Net NPV IRR 0 -$650,000 $0 -$650,000 $148,621 17% 1 $0 $125,000 $125,000 2 $0 $175,000 $175,000 3 -$275,000 $300,000 $25,000 4 $0 $400,000 $400,000 5 $200,000 $200,000 $400,000 Technology "B" Year Cost Income Net NPV IRR 0 -$750,000 $0 1 $0 $175,000 2 $0 $200,000 3 -$370,000 $225,000 4 $0 $375,000 5 $300,000 $350,000 Technology "C" Year Cost Income Net NPV IRR 0 -$808,300 $0 1 $0 $200,000 2 $0 $225,000 3 -$265,000 $250,000 4 $0 $400,000 5 $202,000 $325,000 Increment B-A Year Cost Income Net NPV IRR 0 -$100,000 $0 -$100,000 -$23,453 5% 1 $0 $50,000 $50,000 2 $0 $25,000 $25,000 3 -$95,000 -$75,000 -$170,000 4 $0 -$25,000 -$25,000 5 $100,000 $150,000 $250,000 Increment C-A Year Cost Income Net NPV IRR 0 -$158,300 $0 1 $0 $75,000 2 $0 $50,000 3 $10,000 -$50,000 4 $0 $0 5 $2,000 $125,000 complete the spread sheet
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