Question: 6.40 Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and


6.40 Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and life of each project are estimated Income estimates are not known at this point 6.40 Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and life of each project are estimated. Income estimates are not known at this point. Project C D E Initial S -700 cost Life, years -900 -2300 - 300 -1600 5 5 5 5 An engineer determined the incremental ROR (Ai*) values. From these results, determine which project, if any, should be undertaken, provided the company's MARR is (a) 13.5% per year, and (b) 16% per year. If other calculations must be made 6.40 Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and life of each project are estimated Income estimates are not known at this point 6.40 Five revenue projects are under consideration by General Dynamics for improving material flow through an assembly line. The initial cost (in $1000 units) and life of each project are estimated. Income estimates are not known at this point. Project C D E Initial S -700 cost Life, years -900 -2300 - 300 -1600 5 5 5 5 An engineer determined the incremental ROR (Ai*) values. From these results, determine which project, if any, should be undertaken, provided the company's MARR is (a) 13.5% per year, and (b) 16% per year. If other calculations must be made
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