Question: Design 1 Design 2 Design 3 Design 4 Design 5 Fixed capital investment 12000 13000 15000 17000 19000 Sum of all op and fixed costs

  1. Design 1

    Design 2

    Design 3

    Design 4

    Design 5

    Fixed capital investment

    12000

    13000

    15000

    17000

    19000

    Sum of all op and fixed costs per year

    3500

    3000

    2600

    2400

    2100

    A company must purchase one reactor to be used in an overall operation. Five reactors have been designed , all of which are equally capable of giving the required service . The following data apply to all five designs.

    If the company demands a 13 percent return on any unnecessary investment which of the five designs should be accepted and why. Show your calculations.

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