Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

11.7 Three investment alternatives (A, B, and C) are under consideration. The discounted present worths (PW) are $30,000, $24,000, and $18,000, respectively. The three alter-

image text in transcribed
11.7 Three investment alternatives (A, B, and C) are under consideration. The discounted present worths (PW) are $30,000, $24,000, and $18,000, respectively. The three alter- natives have very different rankings on time required to fill a customer's order (T) and flexibility (F). The following weights have been assigned to the three factors (PW, T, and F): 40, 35, and 25. On a scale from 1 to 10, the following ratings have been assigned to the three alternatives for the three factors: A B Present worth (PW) 10 6 Fill time (7) 6 Flexibility (F) 5 7 10 8 10 8 Using the weighted factor comparison method, which investment alternative is recommended? 11.8 Which investment alternative is recommended in Problem 11.7, if a. the weightings for the three factors are 50, 10, and 40? b. the rating values for fill time for A, B, and Care 5, 7, and 10, respectively? c. another factor is introduced, safety (S), the weights assigned to the factors (PW, T, F, and S) are 30, 20, 10, and 40, and the rating values for S are 10, 8, and 9 for A, B, and C, respectively

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Certified Internal Auditor CIA Practice Of Internal Auditing Part 2- 2019

Authors: Muhammad Zain

1st Edition

1093798459, 978-1093798456

More Books

Students also viewed these Accounting questions