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-ofyear receipts. a) Which program is preferable at MARR =10% ? b) Which program is preferable at MARR =20% ? c) Draw a graph of PW versus %(0%,10%,20%, and 30% ) for the two proposals and state a decision rule for selecting between the two proposals
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