H3A - Time CF Project Balance $(2,000.00) $(2,000.00) MARR...

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Project A Project B Project C Initial investment $2,000,000 $4,200,000 $7,000,000 Annual revenues 3,200,000 6,000,000 8,000,000 Annual costs 2,100,000 4,000,000 5,100,000 Salvage value 100,000 420,000 600,000 Useful life (years) 6 8 8 0 (2,000,000) (4,200,000) (7,000,000) 1 1,100,000 2,000,000 2,900,000 2 1,100,000 2,000,000 2,900,000 3 1,100,000 2,000,000 2,900,000 4 1,100,000 2,000,000 2,900,000 5 1,100,000 2,000,000 2,900,000 6 1,200,000 2,000,000 2,900,000 7 2,000,000 2,900,000 8 2,420,000 3,500,000 PW at 20% 1,691,550.93 3,571,998.18 4,267,304.25 AW $508,659.08 $930,896.38 $1,112,099.70 Select Project C, it has the highest AW.
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Unformatted text preview: Time CF Project Balance $(2,000.00) $(2,000.00) MARR 15.000% 1 $3,600.00 $1,173.88 IRR 21.31% 2 $(1,500.00) $(150.04) 3 $1,000.00 $818.00 4 $(2,500.00) $(1,559.31) 5 $400.00 $(1,491.53) 6 $800.00 $(1,009.32) 7 $400.00 $(824.36) 8 $1,000.00 $(0.00) Time CF Project Balance-35000 $(35,000.00) ERR 12.000% 1 10000 $(29,421.59) IRR 12.63% 2 10000 $(23,138.45) 3 10000 $(16,061.55) 4-10000 $(28,090.62) 5 10000 $(21,639.34) 6 10000 $(14,373.06) 7 10000 $(6,188.82) 8 10000 $3,029.34 9 10000 $13,392.86 10-15000 $0.00...
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This homework help was uploaded on 04/17/2008 for the course ORIE 451 taught by Professor Callister during the Spring '06 term at Cornell University (Engineering School).

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H3A - Time CF Project Balance $(2,000.00) $(2,000.00) MARR...

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