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engineering econ hw help 1. A4-10 There are three possible projects! Sell, develop #1, develop #2 A chemical company wants you to analyze whether it

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engineering econ hw help

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1. A4-10 There are three possible projects! Sell, develop #1, develop #2 A chemical company wants you to analyze whether it is better economically to sell patent rights to a new chemical process for $300,000 cash now (time zero) or whether it would be better to keep the patent rights and develop them using one of two development scenarios for which projected costs and incomes are given on the following time diagrams. All dollar values are in thousands of dollars. a. 100 420 ............... 420 -700 -300 -200 .............. -200 0 1 2 ................. 9 b. 670 ............... 670 -500 -800 -250 .............. -250 0 1 2 ................. 9 Use ROR analysis to determine whether it is better to sell or develop with the "A\" or "B\" scenario. assuming a minimum ROR of 15%. Verify your results with NPV and PVR analyses. If the minimum ROR is raised to 25%, use any valid analysis to determine the economic choice

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