A manufacturing company wants to expand its business, for this, it has 4 investment alternatives

A, B, C, and D, all of them with a planning horizon of 10 years. A and B are mutually exclusive, while project C depends on the completion of project A, and project D depends on B. Below are the values according to a market study for each one of the projects

With a rate of return of 10%.

a) What are the possible projects to be evaluated?

b) With an unlimited budget. which project should be chosen?

c)With a budget of $50,000, does the option taken in (b) change?

 

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Proyect investment Costs-annual income Market value a $ esse $ $ b 35.000 $ 6.000 $ 7.000 $ C 43.500 $ 7.000 $ 8.500 $ d 60.000 $ 10.000 $ 6.200 75.000 12.500 Proyect investment Costs-annual income Market value a $ esse $ $ b 35.000 $ 6.000 $ 7.000 $ C 43.500 $ 7.000 $ 8.500 $ d 60.000 $ 10.000 $ 6.200 75.000 12.500

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a The possible projects to be evaluated are A B C and D For each project the manufacturing company w... View the full answer