Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

26. Your company is considering three mutually exclusive alternatives for implementing an automated production line in the factory. Each production line meets the same service

26. Your company is considering three mutually exclusive alternatives for implementing an automated production line in the factory. Each production line meets the same service requirements, but differences in capital investment and benefits. The study period is 10 years, and the useful lives of all three alternatives are also 10 years. Market values of all alternatives are assumed to be zero. If your MARR is 10% per year, which alternative should be selected in view of the cash flow diagrams shown in below? Use present worth method.

image text in transcribed

image text in transcribedimage text in transcribed

Alternative A $380,000 Alternative B Based on the problem statement, what is the correct formula to calculate the present worth of alternative A? PWa=380000+68000(A/P,10%,10) PWa=380000+68000(P/A,10%,10) PWa=380000+68000(P/A,10%,10) PWa=380000+68000(P/F,10%,10) Based on question 26 , how to choose the best alternative by using the present worth method? if the the present worths for all alternatives are positive, choose the alternative which has the least present worth if the the present worths for all alternatives are positive, choose the alternative which has the greatest present worth if the the present worths for all alternatives are positive, choose the one that has the least negative present worth Question 28 Based on question 26 , what is the present worth of alternative B ? $100,789.00 $37,832.8 $470,000.00 $198,798.00 Question 29 Based on question 26, which alternative is the best one? No answer text provided. Alternative B Alternative C Alternative A

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

Financial Management For Public Health And Not For Profit Organizations

Authors: Steven A. Finkler

1st Edition

0130176141, 9780130176141

More Books

Students also viewed these Finance questions

Question

Discuss how to use job evaluation to build job structures.

Answered: 1 week ago

Question

Discuss why unions exist.

Answered: 1 week ago

Question

Discuss the alternative types of health care plans.

Answered: 1 week ago