Rosco Manufacturing Company Is Considering Three New Projects Each Requiring

question 208

Essay

Rosco Manufacturing Company is considering three new projects each requiring an equipment investment of $20000. Each project will last for 3 years and produce the following cash inflows. $\begin{array}{crrr}\text { Year } & \mathrm{AA} &\mathrm{BB} & \mathrm{CC}\\\hline1 & \$ 7,000 & \$ 9,600 & \$ 11,000 \\2 & 9,000 & 9,600 & 10,000 \\3 &15,000&9,600&9,000\\\text { Total }&\$31,000&\$28,800&\$30,000\end{array}$
The equipment's salvage value is zero. Rosco uses straight-line depreciation. Rosco will not accept any project with a payback period over 2 years. Rosco 's minimum required rate of return is 12%.
Instructions
(a) Compute each project's payback period indicating the most desirable project and the least desirable project using this method. (Round to two decimals.)
(b) Compute the net present value of each project. Does your evaluation change? (Round to nearest dollar.)

Understand how erosion and deposition affect crustal thickness and surface elevation.

Acknowledge the contributions of tectonic settings to regional mountain formation.

Interpret geological evidence for past and present uplift phenomena.

Distinguish between the characteristics of continental and oceanic crust, including their thickness.

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Definitions:

Gender Discrimination

Unjust treatment or considerations based on an individual's sex, often resulting in inequality in opportunities, resources, and rights.

Managerial Positions

Job roles that involve overseeing and directing the operations, strategy, and employees within a section, department, or organization.

Wage Gap

The disparity in earnings between different groups, often related to gender, race, or educational background, indicating inequality in compensation.

Stereotypes

Oversimplified and widely held beliefs or ideas about the characteristics of particular groups or types of people.