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# c 


 
   
     

  


     

  

       
 
     
 

     (If affect on net income of adopting Alternative B is a decrease use
either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Enter all other amounts as positive
amounts and subtract where necessary.)
Net Income

Alternative Alternative Increase

 A B (Decrease)

 
     ! 


     " 
# \$     %   

    
&      

 

## '  

      &( )    
  * 
 
   
 &  
+
     *" 
   
  + 
       &    

%**   



##         

 &      (If an amount is blank enter 0, all boxes must be
filled to be correct. If the impact on net income is a decrease use either a negative sign preceding the number, e.g.
-45 or parenthesis, e.g. (45).)

##  Net 4-Year Income

Increase
 ëetain Equipment ëeplace Equipment (Decrease)
, &    

 * -%  %* 
#     
     " 

## +       

 &   


 
 

## . c /       &

(   
 . 

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 &
( 
    
  
 & 
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( 
 . 
      ( 

      
 
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
   0   
    
. 
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   
( 
   

## &  

 
&  &
 (


+ &
    (   
  
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( +
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   
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 
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       
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 . 
& 
( ( 
  
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+ (    



!!
       

&       . 4
&
(   

    &

   (     
 . (  
     (Round all answers
to 2 decimal places, e.g. 5.25. If an amount is blank enter 0, all boxes must be filled to be correct. If the impact on
net income is a decrease use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Enter
all other amounts amounts as positive and subtract where necessary.)
Net Income
 ÿell Process Further Increase
(Basic kit) (ÿtage 2 Kit) (Decrease)

.
  
-  !!  % 


     

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   %  % 

## #           ! 

. .    . ( 
6
7
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12+  
  
  

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.  ( . 8 
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12+   (  ( 

  )  
. should   . 8 
+        % 9
     

 
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##      

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

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  
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
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c  
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    
   
           





Current Machine New Machine
<   
 
    
      %  " 
:
     

 *   
0
    
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\$
         
  \$       


          = 
  +     
 9   = 
  
  

   

           
 &   (Ignore the time value of money. If
an amount is blank enter 0, all boxes must be filled to be correct. If the impact on net income is a decrease use
either a negative sign preceding the amount, e.g. -45 or parenthesis, e.g. (45). Enter all other amounts as positive
amounts and subtract where necessary.)
 ëetain Machine ëeplace Machine Net Income
Increase
(Decrease)

## <   


      

#     
15 2
    " 

## .  1 2

     

## +   %  * 

+      
 &   


Net Income
 Increase
ëetain Machine ëeplace Machine (Decrease)

## <   


 \$120,000 12 \$100,000 12 \$20,000 

#     
15 2 0  21,000  (21,000) 

## .  1 2 0  5,000  5,000 

+ \$120,000 \$116,000  \$4,000 
12*>
12>

+      
 & replaced.+     



       "    
 & *  &         


+ 
 
 
  "    
 

     ?  




   Project
   Brown  ëed  Yellow 
   
  )  
     @   
 7     %
   %  *
  ! !  !
  *   -
     
  + -  
.  
 9  & =      ? 5   
  &  
 "  
  +   4
    
   4
 
   
A
    ( ? 
     @
        ? (Round your answers to 1 decimal place, e.g. 5.2.)
 A(! 

 A( 

7 -% A( 
   
 & (     ? (Round your answers to 2 decimal places, e.g. 5.25.)

!*%  
(! 

!**  
( 

7 !*  
( 
   
   ? (Round your answers to 0 decimal places, e.g. 5,210.)

% (! 

-% ( 

7 ) ( 

## 3 ?      67  




B? C**DE1)F2DGC15.2%.
B?  CDE1F2DGC 18.2%.
B? 7 CDE1F2DGC17.6%.

Project Brown
Year Net Annual Cash Flow Cumulative Net Cash Flow
 %!1F!2 %! 
 *1%F!2 - 
! 1!F!2 % 
* *1F!2 % 
 *%1F!2 % 


B & (3.46 

)"%C
D*C*%
B?  CDE1F**2GC3.44 

Project Yellow
Year Net Annual Cash Flow Cumulative Net Cash Flow
 -%1%F2 -% 
 -*1*F2  
! -!1!F2 ! 
* %-1-F2 ) 
 -1F2 !% 

B & (3.40 

"!C-
-D%-C*
Project ëed
Item Amount Years PV Factor Present Value
#  

 %* " !%*- !-% 
  
      
B
   
     \$ 10,706 
  Project
  Brown Yellow
Net Annual Cash Net Annual Cash
Year Discount Factor Flow PV Flow PV
 )% %!  %  -%  %-- 
 -)-) *  *!*  -*  )) 
! --   !%!  -!  )% 
* %! *  !  %-  * 
 %-*! *%  %  -  !)- 
+  %  )%  !%  %) 
  
    )     
# 
    \$2,206    \$11,109 
Project Annual ëate of ëeturn Cash Payback Net Present Value

 3 3 3

 1 2 2

7  2 1 1

+ &
? 
Yellow
