ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The product development group of a high-tech electronics company developed five proposals for new products. The company wants
to expand its product offerings, so it will undertake all projects that are economically attractive at the company's MARR of 11% per year.
The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the
basis of a present worth analysis?
Project
Initial Investment
Operating Cost, per Year
Revenue, per Year
Salvage Value
Life
B
$-510
$-120
A
E
$-1,250
$-650
$-550
$-280
$500
SO
5 years
$-400
$-60
$-820
$-250
$475
$10
3 years
$400
$22
10 years
$725
$70
8 years
$525
$70
4 years
The present worth of project A is $
The present worth of project B is $|
The present worth of project C is $[
The present worth of project D is $[
The present worth of project E is $[
Project A is (Click to select) ♥
Project B is (Click to select) ♥
Project C is (Click to select)*
Project D is [(Click to selact) ♥
Project E is (Click to select)
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Transcribed Image Text:The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company's MARR of 11% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis? Project Initial Investment Operating Cost, per Year Revenue, per Year Salvage Value Life B $-510 $-120 A E $-1,250 $-650 $-550 $-280 $500 SO 5 years $-400 $-60 $-820 $-250 $475 $10 3 years $400 $22 10 years $725 $70 8 years $525 $70 4 years The present worth of project A is $ The present worth of project B is $| The present worth of project C is $[ The present worth of project D is $[ The present worth of project E is $[ Project A is (Click to select) ♥ Project B is (Click to select) ♥ Project C is (Click to select)* Project D is [(Click to selact) ♥ Project E is (Click to select)
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