Question
A manufacturing company wants to expand its business, for this it has 4 investment alternatives A, B, C and D, all of them with a
A manufacturing company wants to expand its business, for this it has 4 investment alternatives
A, B, C and D, all of them with a planning horizon of 10 years. A and B are mutually exclusive, while project C depends on the completion of project A, and project D depends on B. Below are the values according to a market study for each one
of the proyects
With a rate of return of 10%.
a) What are the possible projects to be evaluated?
b) With an unlimited budget. which project should be chosen?
c)With a budget of $50,000, does the option taken in (b) change?
please prove with calculation table
\begin{tabular}{|l|lr|lr|ll|ll|} \hline Proyect & a & & b & & c & & d & \\ \hline investment & $ & 35.000 & $ & 43.500 & $ & 60.000 & $ & 75.000 \\ \hline Costs-annual income & $ & 6.000 & $ & 7.000 & $ & 10.000 & $ & 12.500 \\ \hline Market value & $ & 7.000 & $ & 8.500 & $ & 6.200 & & \\ \hline \end{tabular} \begin{tabular}{|l|lr|lr|ll|ll|} \hline Proyect & a & & b & & c & & d & \\ \hline investment & $ & 35.000 & $ & 43.500 & $ & 60.000 & $ & 75.000 \\ \hline Costs-annual income & $ & 6.000 & $ & 7.000 & $ & 10.000 & $ & 12.500 \\ \hline Market value & $ & 7.000 & $ & 8.500 & $ & 6.200 & & \\ \hline \end{tabular}
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