Griffith Vehicle Has Received Three Proposals for Its New Vehicle-Painting

question 62

Essay

Griffith Vehicle has received three proposals for its new vehicle-painting machine.Information on each proposal is as follows:
$$\begin{array} { | l | r | r | r | } \hline & \text { Proposal X } & \text { Proposal Y } & \text { Proposal Z } \\\hline \text { Initial investment in equipment } & \$ 240,000 & \$ 150,000 & \$ 190,000 \\\hline \text { Working capital needed } & 0 & 0 & 10,000 \\\hline \text { Annual cash saved by operations: } & & & \\\hline \text { Year 1 } & 80,000 & 50,000 & 80,000 \\\hline \text { Year 2 } & 80,000 & 42,000 & 80,000 \\\hline \text { Year 3 } & 80,000 & 46,000 & 80,000 \\\hline \text { Year 4 } & 80,000 & 24,000 & 80,000 \\\hline \text { Salvage value end of year: } & & & \\\hline \text { Year 1 } & 100,000 & 80,000 & 60,000 \\\hline \text { Year 2 } & 80,000 & 60,000 & 50,000 \\\hline \text { Year 3 } & 40,000 & 40,000 & 30,000 \\\hline \text { Year 4 } & 10,000 & 20,000 & 15,000 \\\hline \text { Working capital returned } & 0 & 0 & 10,000 \\\hline\end{array}$$ Required:
Determine each proposal's payback.

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Definitions:

Ingested

To eat.

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A serious diabetes complication where the body produces excess blood acids (ketones) due to a lack of insulin.

Trauma

A deeply distressing or disturbing experience, often leading to physical or emotional injuries.

Emergency Medical Services (EMS)

A network of services coordinated to provide aid and medical assistance from the scene of an emergency, including transported to a healthcare facility.