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badly need the answers here Cato Springs Chemicals International, a batch chemical processing company, is considering acquiring new technology in order to enter a new
badly need the answers here
Cato Springs Chemicals International, a batch chemical processing company, is considering acquiring new technology in order to enter a new specialty chemicals market. Three suppliers (A, B, and C) of specially designed centrifuges and associated equipment are under consideration. Depending on which supplier is chosen, slightly different markets will be pursued. The forecasts of net cash flows over a 10-year planning horizon for the three alternatives are given below. EOY CF(A) CF(B) CF(C) 0 -$7,785,000 $8,895,000 $10,435,000 1 $1,337,500 $1,360,200 $1,725,500 2 $1,745,500 $2,166,700 $2,605,700 3 $2,052,800 $2,360,300 $2,807,500 4 $2,395,700 $2,599,000 $3.027,500 5 $2,500,500 $2,785,000 $3.175,000 6 $2,625,600 $3,118,500 $3,400,300 7 $2,785,000 $3,295,900 $3,715,800 8 $3,055,300 $3,368,700 $3,900,000 9 $3,907,500 $4.810,800 $4,402.500 10 $5,335,000 $7,995,000 $8,900,000 Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 10%. should be calculated first: ERR %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 15%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 20%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Cato Springs Chemicals International, a batch chemical processing company, is considering acquiring new technology in order to enter a new specialty chemicals market. Three suppliers (A, B, and C) of specially designed centrifuges and associated equipment are under consideration. Depending on which supplier is chosen, slightly different markets will be pursued. The forecasts of net cash flows over a 10-year planning horizon for the three alternatives are given below. EOY CF(A) CF(B) CF(C) 0 -$7,785,000 $8,895,000 $10,435,000 1 $1,337,500 $1,360,200 $1,725,500 2 $1,745,500 $2,166,700 $2,605,700 3 $2,052,800 $2,360,300 $2,807,500 4 $2,395,700 $2,599,000 $3.027,500 5 $2,500,500 $2,785,000 $3.175,000 6 $2,625,600 $3,118,500 $3,400,300 7 $2,785,000 $3,295,900 $3,715,800 8 $3,055,300 $3,368,700 $3,900,000 9 $3,907,500 $4.810,800 $4,402.500 10 $5,335,000 $7,995,000 $8,900,000 Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 10%. should be calculated first: ERR %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 15%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferred. Perform an external rate of return analysis to which, if any, of the mutually exclusive investments should be pursued, using a minimum attractive rate of return of 20%. should be calculated first: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Next, should be calculated: ERR = %. Therefore, it acceptable. Round entries to 2 decimal places. The tolerance is +0.01. Thus, is preferredStep by Step Solution
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