Question

In: Accounting

A manager has up to $190,000 available to invest in new construction equipment for the company.


Which alternatives are NOT acceptable.

A manager has up to $190,000 available to invest in new construction equipment for the company. The manager must purchase a new dump truck and does not have a need for a second dump truck. The dumping trailer can only be purchased along with a dump truck. From the list of possible equipment in Table 17-11, identify all of the mutually exclusive alternatives and identify which of the alternatives are not acceptable. 

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Solutions

Expert Solution

Possible alternatives with reason why not accepted are listed in the below table

Alternatives Acceptable Reasoning
Do nothing No Does not contain 2 or 3 atleast one dumping truck is needed
1 No Does not contain 2 or 3 atleast one dumping truck is needed
2 Yes
3 Yes
4 No Does not contain 2 or 3 atleast one dumping truck is needed
1 and 2 No Exceeds budget
1 and 3 Yes
1 and 4 no Does not contain 2 or 3 atleast one dumping truck is needed
2 and 3 No Only one dumping truck is needed
2 and 4 Yes
3 and 4 Yes
1,2 and 3 No Only one dumping truck is needed
1,2 and 4 No Exceeds budget
1,3 and 4 No Exceeds budget
2,3 and 4 No Only one dumping truck is needed
1,2,3 and 4 No Only one dumping truck is needed

ekkarill92 answered 2 years ago
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