Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started