23. Tempura, Inc., is considering two projects. Project A requires an investment of $50,000. Estimated annual receipts

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23. Tempura, Inc., is considering two projects. Project A requires an investment of $50,000. Estimated annual receipts for 20 years are $20,000; estimated annual costs are $12,500. An alternative project, B, requires an investment of

$75,000, has annual receipts for 20 years of $28,000, and has annual costs of

$18,000. Assume both projects have a zero salvage value and that MARR is 12 percent/year.

a. What is the present worth of each project?

b. Which project should be recommended?

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Fundamentals Of Engineering Economic Analysis

ISBN: 9781118414705

1st Edition

Authors: John A. White, Kellie S. Grasman, Kenneth E. Case, Kim LaScola Needy, David B. Pratt

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Question Posted: Nov 06, 2024 08:01 AM

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23. Tempura, Inc., is considering two projects. Project A requires an investment of $50,000. Estimated annual receipts

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Fundamentals Of Engineering Economic Analysis

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