
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Estimate the Benefit, Salvage Value, and Useful Life for each alternative.

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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