Question
PLEASE ANSWER THIS QUESTION THROUGH STEPS SO I CAN UNDERSTAND Step 1: Eliminate any project whos investment exceeds the budget Step2: Arrange the surviving projects
PLEASE ANSWER THIS QUESTION THROUGH STEPS SO I CAN UNDERSTAND
Step 1: Eliminate any project whos investment exceeds the budget Step2: Arrange the surviving projects in ascending order of investment (break any investment ties arbitrarily). Now eliminate any project that is dominated by another project: the candidates that remain will be in ascending order both of investment and return. Compute i* for each candidate Step3: Eliminate from further consideration any candidate having i* The KLN Company is attempting to determine the economically best size of processor machine for their facilities. The six alternative machine sizes which are feasible are as given in the first Table Each machine has a life of 100 years and no salvage value, so that i* = R/I,. The company has a total capital budget of $350 000 and a MARR of 15%. Which machine should they buy? a Size of the Machine Bulk Economy Extended Super Delux Regular Annual Revenue R 50000 7200 52000 36000 45000 25000 Investment (1) 300000 60000 385000 200000 220000 16.67% 12% 20.50% 18% 20,45% 25% 100000 The KLN Company is attempting to determine the economically best size of processor machine for their facilities. The six alternative machine sizes which are feasible are as given in the first Table Each machine has a life of 100 years and no salvage value, so that i* = R/I,. The company has a total capital budget of $350 000 and a MARR of 15%. Which machine should they buy? a Size of the Machine Bulk Economy Extended Super Delux Regular Annual Revenue R 50000 7200 52000 36000 45000 25000 Investment (1) 300000 60000 385000 200000 220000 16.67% 12% 20.50% 18% 20,45% 25% 100000
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