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The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it
The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company's MARR of 20% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis, under the following conditions? a. There is no budget restriction. b. If the allowed budget is more than $1.3 million (i.e., $1300 in $1000 units). 1 5 Project Initial investment, $ M&O cost, $/year Revenue, $/year Salvage value, $ years 3 -660 -280 -400 -100 360 2 -510 -140 235 22 10 400 -820 -315 605 8 8 -900 -450 790 95 4 Life, 3 5 The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company's MARR of 20% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis, under the following conditions? a. There is no budget restriction. b. If the allowed budget is more than $1.3 million (i.e., $1300 in $1000 units). 1 5 Project Initial investment, $ M&O cost, $/year Revenue, $/year Salvage value, $ years 3 -660 -280 -400 -100 360 2 -510 -140 235 22 10 400 -820 -315 605 8 8 -900 -450 790 95 4 Life, 3 5
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