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Batelco Inc. is considering two mutually exchive projects & and is Each project requires an intal inversa printed in the below table. The economic life

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Batelco Inc. is considering two mutually exchive projects & and is Each project requires an intal inversa printed in the below table. The economic life of the project A will be Sear's and Project will be 6 years, and both projects carry sane n Batelco Inc uses a discount rate of 12%. After comidering the current economic situation Bates the han set a maximsan payback period of 4 years and minimum return on investment (RC) 18% A financial analyst, prepared estimates of the annual revers and costs associated with each project as in the below table: Projects A Projects Cost of equipment 240,000 Working Capital needed 60,000 Overhaul of the equipment in two years 12000 Annual revenues and costs: Sales revenues 375,000 180,000 Variable expenses 48,000 Depreciation expense 90,000 Fixed out-of-pocket operating costs 5 year Life of Project 470,000 80,000 14000 300,000 90,000 78,333 70,000 6 years Batelco Inc. is considering two mutually exchive projects & and is Each project requires an intal inversa printed in the below table. The economic life of the project A will be Sear's and Project will be 6 years, and both projects carry sane n Batelco Inc uses a discount rate of 12%. After comidering the current economic situation Bates the han set a maximsan payback period of 4 years and minimum return on investment (RC) 18% A financial analyst, prepared estimates of the annual revers and costs associated with each project as in the below table: Projects A Projects Cost of equipment 240,000 Working Capital needed 60,000 Overhaul of the equipment in two years 12000 Annual revenues and costs: Sales revenues 375,000 180,000 Variable expenses 48,000 Depreciation expense 90,000 Fixed out-of-pocket operating costs 5 year Life of Project 470,000 80,000 14000 300,000 90,000 78,333 70,000 6 years

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