Central Trailer Supply decided to also use NPV to review the three proposals for its new...

Central Trailer Supply decided to also use NPV to review the three proposals for its new trailer assembly line. Information on each proposal is the same and follows: Proposal X Proposal Y Proposal Z Initial investment in equipment $115,000 $130,000 $145,0000 Working capital needed 0 0 15,000 Annual cash saved by operations: Year 1 55,000 60,000 60,000 Year 2 55,000 40,000 60,000 Year 3 55,000 40,000 60,000 Year 4 55,000 10,000 60,000

Required:

Determine each proposal's NPV. A rate of 10% is used for evaluation. Show your answer in a table format. (Use Tables 2 & 4 in Appendix A of your textbook to complete.)

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Solution:

ekkarill92 answered 1 year ago

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