1.) Unless theyre telling you something different, theyre telling you a nominal rate

2.) Unless they tell you something different, the compound period is 1

3.) Unless they tell you something different the time period theyre referring to is 1

NOT ON EXCEL PLEASE!!

(20 pts) ACME, Inc. has $300,000 in available capital that it wants to use to reduce future costs. It is considering the following options: Initial Cost Cost Savings Project Investment ($) ($/yr) A Replace equipment to reduce labor costs 200,000 50,000 B Make parts in-house instead of purchasing them 120,000 35,000 Change packaging to reduce shipping costs 100,000 30,000 Assuming an MARR of 18% per year and a 10-year common study period, which project or projects should ACME choose