39. Vita Pharmaceutical Co. is considering four proposals for the expansion of its dietary supplements production facility. The investment requirements and the cash flows for an 8-year period are presented below. P1 P2 P3 P4 Initial Investment P13M P14.5M P15M 15.8M Annual Receipts 1.5M 1.6M 1.7M 2.2M Annual Disbursements 0.7M 0.5M 0.65M 0.7M Salvage Value 1.3M 1.5M 2M 2.5M Determine the best alternative if the company applies a 14% MARR of its investments. (Ans. Consider P4; i2-1=13.27% ; i3-1=5.91% ; i4-1=21.76%)

39. Vita Pharmaceutical Co. is considering four proposals for the expansion of its dietary supplements production facility. The investment requirements and the cash flows for an 8-year period are...

39. Vita Pharmaceutical Co. is considering four proposals for the expansion of its dietary supplements production facility. The investment requirements and the cash flows for an 8-year period are presented below.

	P1	P2	P3	P4
Initial Investment	P13M	P14.5M	P15M	15.8M
Annual Receipts	1.5M	1.6M	1.7M	2.2M
Annual Disbursements	0.7M	0.5M	0.65M	0.7M
Salvage Value	1.3M	1.5M	2M	2.5M

Determine the best alternative if the company applies a 14% MARR of its investments.

(Ans. Consider P4; i_2-1=13.27% ; i_3-1=5.91% ; i_4-1=21.76%)

Jun 04, 2022

SOLUTION.PDF

39. Vita Pharmaceutical Co. is considering four proposals for the expansion of its dietary supplements production facility. The investment requirements and the cash flows for an 8-year period are...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment