Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company that makes food - friendly silicone ( for use in cooking and baking pan coatings ) is considering four independent projects shown, all

A company that makes food-friendly silicone (for use in cooking and baking pan coatings) is considering four independent projects shown, all of which can be considered to be viable for only 10 years. The companys MARR is 15% per year.
Project A B C D
First cost, $ 1,3502,1505,3007,300
Annual net income, $/year 17043010001,400
Salvage value, $ 5687
Determine which projects to implement. Financial values are in $1000 units.
The present worth of project A is $ -495.56 Numeric Response 1.Edit Unavailable. -495.56 correct., so project A is rejected Correct.
The present worth of project B is $ 9.56 Numeric Response 2.Edit Unavailable. 9.56 correct., so project B is accepted Correct.
The present worth of project C is $ -279.22 Numeric Response 3.Edit Unavailable. -279.22 correct., so project C is rejected Correct.
The present worth of project D is $ -271.94 Numeric Response 4.Edit Unavailable. -271.94 correct., so project D is rejected Correct.

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 Accounting Concepts And Applications

Authors: K. Fred Skousen, James D. Stice, Earl Kay. Stice, W. Steve Albrecht

7th Edition

0538876255, 978-0538876254

More Books

Students also viewed these Accounting questions