Business, 11.03.2020 06:27 yobanajk

5. Consider these two alternatives. (11.2)

Alternative 1 Alternative 2

Capital investment $4,500 $6,000

Annual revenues $1,600 $1,850

Annual expenses $400 $500

Estimated market $800 $1,200

Value Useful life 8 years 10 years

Suppose that the capital investment of Alternative 1 is known with certainty. By how much would the estimate of capital investment for Alternative 2 have to vary so that the initial decision based on these data would be reversed? The annual MARR is 15% per year.

b. Determine the life of Alternative 1 for which the AWs are equal 11-8. The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment (study) period is four years, and MARR is 12% per year. Data for the fixture costs of the systems are as follows.

Alternatives

A B C

Capital investment $12,000 $15,800 $8,000

Annual savings $4,000 $5,200 $3,000

MV (after 4 years) $3,000 $3,500 $1,500

IRR 19.2% 18% 23%

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 20:30, aidy8665

Afactory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. if a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. how is this factory owner seeking to solve the agency conflict problem in this case?

Answers: 2

continue

Business, 22.06.2019 06:00, slimt69561

When an interest-bearing note comes due and is uncollectible, the journal entry includes debitingaccounts receivable and crediting notes receivable and interest revenue. accounts receivable and crediting interest revenue. notes receivable and crediting accounts receivable and interest revenue. notes receivable and crediting accounts receivable.

Answers: 3

continue

Business, 22.06.2019 11:00, littlesami105

Which ranks these careers that employers are most likely to hire from the least to the greatest?

Answers: 2

continue

Business, 22.06.2019 17:40, kennyg02

Because the demand for wheat tends to be inelastic. true or false

Answers: 1

continue

You know the right answer?

5. Consider these two alternatives. (11.2)

Alternative 1 Alternative 2

Cap...