Fabrication committee to evaluate proposals for modification manufacturing system. Two proposals have been finalized and accepted for consideration with both proposals have a same capital investment...

Extracted text: Fabrication committee to evaluate proposals for modification manufacturing system. Two proposals have been finalized and accepted for consideration with both proposals have a same capital investment $30,300. Both proposals able to give net saving and return to the company for 9 years because of less non-defective unit and the increase of productivity as shown in Figure la and 1b. Analyze which proposal have the best return of investment for 9 years. 12% per year compounded quarterly 20,000 20,000 20,000 9,000 9,000 9T years Proposal 1 Cash Flow Diagram 10% per year compounded semi-annually 18,000 18,000 15,000 15,000 15,000 9т years Proposal 2 Cash Flow Diagram