1. 4.48 A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering four independent projects shown, all of which can be considered to be viable for only 10 years.

The company’s MARR is 15% per year.

(a) Determine which projects to implement. Financial values are in $1000 units.

(b) (Spreadsheet exercise) Use GOAL SEEK to determine the required first cost of project D to just accept it. Is this a maximum or minimum required first cost?

Table Summary: Table divided into 5 columns with the headings marked from left to right as: Project; A; B; C;

and D.

Project A B C D First cost, $ −1200 −2000 −5000 −7000 Annual net income, $/year 200 400 1100 1300 Salvage value, $ 5 6 8 7