Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 07 Jul 2017 My Price 11.00

investment situation

a company evaluating 3 investment situation 1 produce a new line 2expand its blivet line to include several size 3 devlope a new higher quality,the expected present value and amount of investment as follows 1investment required200000 2investment 115000 3 investment 270000 present value of future cash flows, 1, 290000 2,185000 3,400000 if projects 1 and 2 are jointly taken there will no economics ,the investment required ands present value wiil simply be sum of the parts. with projects 1 and 3 ,economics are possible in investment because one of the machine acquired can be used in both production process .the total investment required for projects 1 and 3 combined is 440000. if projects 2 and 3 are undertaken ,there are economics to achived in marketing and producing the products but not in investment. the expected present value of future cash flows for projects 2 and 3 are combined is rs620000. if all 3 projects are undertaken simultaneously ,the economics noted above will still hold. however , a rs 125000 extension on the plant will be necessary , as space is not available for all 3 projects. which projects should be chosen

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Status NEW Posted 07 Jul 2017 12:07 PM My Price 11.00

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