Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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The Mwatex Textile Company is considering two mutually exclusive electronic control systems for its textile machines. The investment period is 6 years (equal lives), and the MARR is
12% per year. Data for the systems are given below. Based on the PW method, which alternative should the company select?
Alternative
OA Alternative Y
OB. Alternative X
A). The net PW of the alternative X is $
(Round to the nearest dollar)
The net PW of the alternative Y is $(Round to the nearest dollar)
Which alternative should the company select? Choose the correct answer below.
Y
B). What if the MARR was 6%, instead of 12%?
The net PW of the alternative X is $ (Round to the nearest dollar)
The net PW of the alternative is $(Round to the nearest dollar)
Which alternative shodd the mmnany salart? Choose the correct anewar hair
Capital
Investment
$7,000
$14,000
Net Annual
Revenues
$4,800
$6,400
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Transcribed Image Text:The Mwatex Textile Company is considering two mutually exclusive electronic control systems for its textile machines. The investment period is 6 years (equal lives), and the MARR is 12% per year. Data for the systems are given below. Based on the PW method, which alternative should the company select? Alternative OA Alternative Y OB. Alternative X A). The net PW of the alternative X is $ (Round to the nearest dollar) The net PW of the alternative Y is $(Round to the nearest dollar) Which alternative should the company select? Choose the correct answer below. Y B). What if the MARR was 6%, instead of 12%? The net PW of the alternative X is $ (Round to the nearest dollar) The net PW of the alternative is $(Round to the nearest dollar) Which alternative shodd the mmnany salart? Choose the correct anewar hair Capital Investment $7,000 $14,000 Net Annual Revenues $4,800 $6,400
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