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A food factory considers 2 alternatives for the manufacture of an additive with the following data: PROCESS ALK PROCESS AC Initial investment $ 6,000,000 8,200,000

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A food factory considers 2 alternatives for the manufacture of an additive with the following data: PROCESS ALK PROCESS AC Initial investment $ 6,000,000 8,200,000 Income estimate Production 5,000 Kg / year 7,000 Kg / year Price $ 2,000/ kg 2,000 / kg Costs per year Production $ 4,500,000 7,800,000 Distribution 2,000,000 3,000,000 Administration 1,000,000 1,000,000 Recovery value 1,500,000 2,000,000 With economic life of 10 years for each process, compare by rate of return on incremental investment. TMAR = 12% draw up the cash flow diagram

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