Task 4a - Please solve this question in detail. Galfar Industries is planning to modernize its production facility. The company has identified threedifferent technologies which could help them meet this goal. The cash flows associated with thesethree technologies are summarized in Table 4.Initial Outlay (RO)Expected ProjectLifeAnnual Revenue(RO)(in years)Technology 1Technology 219000323023000322014Technology 342000672011Table 4(a) Evaluate each of the three technologies based on the present worth method of comparisonassuming 11% interest rate compounded semi-annually. Based upon the evaluation suggestthe best technology which is to be implemented.

We will discount all the future cash flows to present value to find the best technology.

Galfar Industries is planning to modernize its production facility. The company has identified three different technologies which could help them meet this goal. The cash flows associated with these three technologies are summarized in Table 4. Initial Outlay (RO) Annual Revenue Expected Project Life (RO) (in years) Technology 1 Technology 2 19000 3230 23000 3220 14 Technology 3 42000 6720 11 Table 4 (a) Evaluate each of the three technologies based on the present worth method of comparison assuming 11% interest rate compounded semi-annually. Based upon the evaluation suggest the best technology which is to be implemented.

Galfar Industries is planning to modernize its production facility. The company has identified three different technologies which could help them meet this goal. The cash flows associated with these three technologies are summarized in Table 4. Initial Outlay (RO) Annual Revenue Expected Project Life (RO) (in years) Technology 1 Technology 2 19000 3230 23000 3220 14 Technology 3 42000 6720 11 Table 4 (a) Evaluate each of the three technologies based on the present worth method of comparison assuming 11% interest rate compounded semi-annually. Based upon the evaluation suggest the best technology which is to be implemented.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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