The independent project estimates below have been developed by the engineering and finance managers at Golphanen Enterprises. The corporate MARR is 8% per year, and the capital investment limit set by the CFO is $4 million. As a new employee in the Engineering Department, you have been asked to recommend the economically best projects. Use (a) hand solution, and (b) spreadsheet solution to determine your recommendation. Project Cost, Life, NCF, Project $ Millions Years $ per Year 1 −1.5 8 360,000 2 −3.5 10 600,000 3 −1.8 5 520,000 4 −2.0 4 820,000
The independent project estimates below have been developed by the engineering and finance managers at Golphanen Enterprises. The corporate MARR is 8% per year, and the capital investment limit set by the CFO is $4 million. As a new employee in the Engineering Department, you have been asked to recommend the economically best projects. Use (a) hand solution, and (b) spreadsheet solution to determine your recommendation. Project Cost, Life, NCF, Project $ Millions Years $ per Year 1 −1.5 8 360,000 2 −3.5 10 600,000 3 −1.8 5 520,000 4 −2.0 4 820,000
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
Section: Chapter Questions
Problem 1PS
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Question
The independent project estimates below have
been developed by the engineering and finance
managers at Golphanen Enterprises. The corporate
MARR is 8% per year, and the capital investment
limit set by the CFO is $4 million. As a
new employee in the Engineering Department,
you have been asked to recommend the economically
best projects. Use (a) hand solution, and
(b) spreadsheet solution to determine your
recommendation.
Project Cost, Life, NCF,
Project $ Millions Years $ per Year
1 −1.5 8 360,000
2 −3.5 10 600,000
3 −1.8 5 520,000
4 −2.0 4 820,000
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