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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 17% 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? Project A B C D E Initial Investment $-700 $-510 $-660 $-820 $-1,050 Operating Cost, per Year $-120 $-170 $-220 $-270 $-370 Revenue, per Year $475 $375 $475 $525 $675 Salvage Value $4 $ 24 $2 $90 $90 Life 3 years 10 years 5 years 8 years 4 years The present worth of project A is $ 136.32 The present worth of project B is $ -63.40 The present worth of project C is $ -86.63 The present worth of project D is $ 25.51 The present worth of project E is $ -554.82 Project A is accepted Project B is |accepted Project C is accepted Project D is accepted Project E is rejected
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