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21. Nylan Manufacturing is considering two alternative investment proposals with the followingdetails: Proposal X Proposal Y Investment $720,000 $500,000 Useful life 5 years 4 years
21.
Nylan Manufacturing is considering two alternative investment proposals with the followingdetails:| Proposal X | Proposal Y | |
| Investment | $720,000 | $500,000 |
| Useful life | 5 years | 4 years |
| Estimated annual net cash inflows | $150,000 | $90,000 |
| Residual value | $50,000 | $0 |
| Depreciation method | Straightminusline | Straightminusline |
| Discount rate | 10% | 9% |
| 8% | 9% | 10% | |
| 1 | 0.926 | $0.92 | 0.909 |
| 2 | 1.783 | 1.759 | 1.736 |
| 3 | 2.577 | 2.531 | 2.487 |
| 4 | 3.312 | 3.24 | 3.17 |
| 5 | 3.993 | 3.89 | 3.791 |
| 6 | 4.623 | 4.486 | 4.355 |
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
