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QUESTION 4 Alternative 11 Alternative III The following questions are related to this scenario: Your company presented you with the following MEA's: Alternative Capital Investment

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QUESTION 4 Alternative 11 Alternative III The following questions are related to this scenario: Your company presented you with the following MEA's: Alternative Capital Investment $1,000,000 Annual Revenue $160,000 Useful Life (years) 12 Your company's planning horizon - 10 years, and MARR = 10%. Salvage values are assumed to be 20% of the initial Investment $1,100,000 $1,500,000 $200,000 $190,000 15 8 Which method would you deem most appropriate to help you make your investment decision? a) Imputed Market value technique Ob) Co-Terminated assumption O c) Capitalized Worth method O d) Co-Imputed Black Market technique QUESTION 5 Given your selection method above, calculate the Present Worth for Alternative I. O a) $138,805 Ob) $126,650 O c) $118,930 O d) $154,405 QUESTION 6 Given your selection method above, calculate the present Worth for Alternative II. O a) $56,430 Ob) $71,320 OC) $75,170 O d) $80,405 Chil QUESTION 7 Given your selection method above, calculate the Present Worth for Alternative III. O a) $18,500 Ob) $16,260 O c) $11,930 O d) $15,405 QUESTION 8 Given your calculations above, which of the following would you select? O a) Alternative b) Alternative II O c) Alternative III d) None of the alternatives are viable

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