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Two types of productivity programs are being considered for funding. Both have an initial cost of $10,000 for training equipment and consulting contracts. Program A
- Two types of productivity programs are being considered for funding. Both have an initial cost of $10,000 for training equipment and consulting contracts. Program A promises to produce constant net revenues of $4,000 per year for 5 years. Net revenues from Program B are expected to be $10,000 the first year and $2,000 per year for the next 4 years. All revenues are considered to be end-of-year receipts. Use the present worth method to:
- a) To determine which program is preferable at MARR=10%?
- b) To determine which program is preferable at MARR=20%?
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