ols Ampts Keep the Highest: 15 14. Problem 10-20 (Present Value of Costs) cBook Present Value of Costs The Aubey Coffee Company is evaluating the within-plant distribution system for its new roasting, grinding, and low annual operating costs and (2) several forklift trucks, which cost less but have considerably higher operatin have no effect on the overall revenues of the project. The cost of capital for the plant is 12%, and the projects Expected Net Conveyor -$500,000 - 120.000 - 120,000 - 120.000 Year 0 1 2 3 aluating Cash Flows bution system for its new roasting, grinding, and packing plant. The two alternatives are (1) a conveyor system with a high cost but ich cost less but have considerably higher operating costs. The decision to construct the plant has already been made, and the choice here ed capital for the plant is 12%, and the projects' expected net costs are listed in the following table: Expected Net Cost Year Conveyor Forklift -$500,000 -$200,000 -120,000 - 160,000 2 -120,000 -160,000 3 - 120,000 - 160,000 4 - 120,000 - 160,000 -20,000 - 160,000 1 2 3 4 -1 5 the of each alternative? The rative 1 is Seed The rative 2 is Select What is the present value of costs of each alternative? Do not round intermediate calcular Attive S Atentive 2 which method should be chosen? should be chosen Grade it Now Save & - here to search o