1. A plastic manufacturing company produces a product from polystyrene. Two mixing processes, batch and continuous...

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1. A plastic manufacturing company produces a product from polystyrene. Two mixing processes, batch and continuous are available with the following data for each process: Batch Continuous Initial Cost P 50,000.00 P 100,000.00 Maintenance cost/year P 10,000.00 P 36,000.00 Salvage Value P 6,000.00 P 12,000.00 Life time 5 years 5 years Capacity (units/year) 1,000,000 2,000,000 The company uses straight-line depreciation, pays 48% of its net income as income tax, and has an after-tax minimum attractive rate of return of 15%. The company has an infinite market and can sell all of the products it produces at P 0.50 per unit. Which of the given comparative figures give the closes evaluation for the best investment? *Note show your solution in PW and FW method* 1. A plastic manufacturing company produces a product from polystyrene. Two mixing processes, batch and continuous are available with the following data for each process: Batch Continuous Initial Cost P 50,000.00 P 100,000.00 Maintenance cost/year P 10,000.00 P 36,000.00 Salvage Value P 6,000.00 P 12,000.00 Life time 5 years 5 years Capacity (units/year) 1,000,000 2,000,000 The company uses straight-line depreciation, pays 48% of its net income as income tax, and has an after-tax minimum attractive rate of return of 15%. The company has an infinite market and can sell all of the products it produces at P 0.50 per unit. Which of the given comparative figures give the closes evaluation for the best investment? *Note show your solution in PW and FW method*

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Saluttos 7 Conuos Batch mitjal CostP 5g000 paprecjap... View the full answer