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A Medium Size Manufacturing Company Has a Budget of $200,000

Question 5

Multiple Choice

A medium size manufacturing company has a budget of $200,000 to invest on five different capital projects. Each has a six year life. Additional financial data for the five project opportunities are given below.
ABCDE Initial Cost $50 K$80K$30K$40 K$60 K EUAB 12,16018,3687,932865213,374\begin{array} { | l | l | l | l | l | l | } \hline & \mathbf { A } & \mathbf { B } & \mathrm { C } & \mathrm { D } & \mathrm { E } \\\hline \text { Initial Cost } & \$ 50 \mathrm {~K} & \$ 80 K & \$ 30 K & \$ 40 \mathrm {~K} & \$ 60 \mathrm {~K} \\\hline \text { EUAB } & 12,160 & 18,368 & 7,932 & \mathbf { 8 } 652 & 13,374 \\\hline\end{array} Determine which projects should be funded.


A) A
B) B
C) C
D) D
E) E

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