A company that makes food-friendly silicone (for use in cooking and baking pan coatings)is considering four independent projects shown, all of which can be considered to be viable for only 10 years. The company's MARR is 15% per year. Project A B C D First Cost, $ -1500 -2300 -5600 -7600 Annual net Income, $/year 200 460 1150 1200 Salvage value, $ 5 6 8 7 Determine which products to implement Financial values are in $1000 units. The present worth of project A is $___________, So project A is ___________(Rejected / Accepted) The present worth of project B is $___________, So project B is ___________(Rejected / Accepted) The present worth of project C is $___________, So project C is ___________(Rejected / Accepted) The present worth of project D is $___________, So project D is ___________(Rejected / Accepted)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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A company that makes food-friendly silicone (for use in cooking and baking pan coatings)is considering four independent projects shown, all of which can be considered to be viable for only 10 years. The company's MARR is 15% per year.

Project A B C D
First Cost, $ -1500 -2300 -5600 -7600
Annual net Income, $/year 200 460 1150 1200
Salvage value, $ 5 6 8 7

Determine which products to implement Financial values are in $1000 units.

  1. The present worth of project A is $___________, So project A is ___________(Rejected / Accepted)
  2. The present worth of project B is $___________, So project B is ___________(Rejected / Accepted)
  3. The present worth of project C is $___________, So project C is ___________(Rejected / Accepted)
  4. The present worth of project D is $___________, So project D is ___________(Rejected / Accepted)
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