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A large food corporation is considering the development and production of three types of beverages, ranging juices to instant drinks. The type of markets, margins
A large food corporation is considering the development and production of three types of beverages, ranging juices to instant drinks. The type of markets, margins of profit, sales volume and technology needed are quite different in each case. The following summarizes the economic aspects of the proiects: If MARR is 12% and the projects' lives will be 6 years: a. What is the decision criterion? ( 2 pts) IRR, wethod b. Which alternative is the most profitable? (16 pts) Remember to clearly show the cash flow diagram(s) and the necessary equivalent model(s). (6 pts) A large food corporation is considering the development and production of three types of beverages, ranging juices to instant drinks. The type of markets, margins of profit, sales volume and technology needed are quite different in each case. The following summarizes the economic aspects of the proiects: If MARR is 12% and the projects' lives will be 6 years: a. What is the decision criterion? ( 2 pts) IRR, wethod b. Which alternative is the most profitable? (16 pts) Remember to clearly show the cash flow diagram(s) and the necessary equivalent model(s). (6 pts)
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