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book Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin cover

Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Edition 7ISBN: 978-0073376301
book Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin cover

Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Edition 7ISBN: 978-0073376301
Exercise 16
Helical Systems, Inc. uses a minimum attractive rate of return of 8% per year, compounded annually. The company is evaluating two new processes for improving the efficiency of its manufacturing operation. The cash flow estimates associated with each process are shown below. A correct equation to use for an incremental rate of return analysis is: Helical Systems, Inc. uses a minimum attractive rate of return of 8% per year, compounded annually. The company is evaluating two new processes for improving the efficiency of its manufacturing operation. The cash flow estimates associated with each process are shown below. A correct equation to use for an incremental rate of return analysis is:   a) 0 = 10,000 + 3000 (P/A, i *,3) + 1000( P / F , i *,3) B) 0 = 40,000( A / P , i *,3) - 15,000 + 5000( A / F , i *,3) C) 0 = 50,000( A / P , i *,3) - 12,000 + 6000 (A/F, i *,3) D) 0 = 10,000 - 3000( P / A , i *,3) + 1000( P / F , i *,3) a) 0 = 10,000 + 3000 (P/A, i *,3) + 1000( P / F , i *,3)
B) 0 = 40,000( A / P , i *,3) - 15,000 + 5000( A / F , i *,3)
C) 0 = 50,000( A / P , i *,3) - 12,000 + 6000 (A/F, i *,3)
D) 0 = 10,000 - 3000( P / A , i *,3) + 1000( P / F , i *,3)
Explanation
Verified
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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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