Question: 11. Two types of productivity programs are being considered for funding. Both have an initial cost of $10,000 for training equipment and consulting contracts. Program
11. Two types of productivity programs are being considered for funding. Both have an initial cost of $10,000 for training equipment and consulting contracts. Program A promises to produce constant net revenues of $4,000 per year for 5 years. Net revenues from program B are expected to be $10,000 the first year and $2,000 per year for the next 4 years. All revenues are considered end-of-year receipts. a) Which program is preferable at MARR = 10%? b) Which program is preferable at MARR = 20%? c) Draw a graph of PW versus i (0%, 10%, 20%, and 30%) for the two proposals and state a decision rule for selecting between the two proposals.
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