Central Trailer Supply Has Received Three Proposals for Its New

question 92

Essay

Central Trailer Supply has received three proposals for its new trailer assembly line.Information on each proposal is as follows:
$$\begin{array} { | l | r | r | r | } \hline & \text { Proposal X } & \text { Proposal Y } & \text { Proposal Z } \\\hline \text { Initial investment in equipment } & \$ 115000 & \$ 130000 & \$ 14500 \\\hline \text { Working capital needed } & 0 & 0 & 15000 \\\hline \text { Annual cash saved by operations: } & & & \\\hline \text { Year 1 } & 55000 & 60000 & 60000 \\\hline \text { Year 2 } & 55000 & 40000 & 60000 \\\hline \text { Year 3 } & 55000 & 40000 & 60000 \\\hline \text { Year 4 } & 55000 & 10000 & 6000 \\\hline \text { Salvage value end of year: } & & & \\\hline \text { Year 1 } & 30000 & 25000 & 45000 \\\hline \text { Year 2 } & 25000 & 20000 & 40000 \\\hline \text { Year 3 } & 20000 & 15000 & 35000 \\\hline \text { Year 4 } & 15000 & 10000 & 25000 \\\hline \text { Working capital returned: } & 0 & 0 & 15000 \\\hline\end{array}$$
Required:
Determine each proposal's payback.
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Definitions:

Superordinate Goals

Shared objectives that transcend individual or group interests, requiring cooperative efforts to achieve.

Hostility

Feelings of anger, aggression, and resentment that may result from frustration or perceived threats, often leading to confrontational behavior.

Factions

Subgroups within a larger group that have distinct interests or viewpoints, often causing division or conflict.

Contact Hypothesis

A theory suggesting that interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.