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Business, 10.10.2019 03:10 unkownperson030

Your company manufactures scientific calculators. there are two options, a and b, that may increase plant capacity. the parameters associated with each option have been estimated. (20 points) option a b initial cost, $ -45000 -58000 maintenance cost, $/year -8000 -4000 salvage value, $ 4000 6000 useful life, years 6 6 a. evaluate each option and answer which one should be selected based on a net present value comparison at an interest rate of 12% per year? (10 points) b. your company has a standard practice of evaluating all options over a 3-year period. if a study period of 3 years is used and the salvage values are not expected to change, which option should be selected? (10 points)

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