(Answered) A company wants to choose from 3 productsproduct 1 cost

Management Studies

A company wants to choose from 3 products.

Product 1 cost $27,000 and has a salvage value of $300

Product 2 cost $19,000 and has a salvage value of $250

Product 3 cost $21,000 and has a salvage value of $350

If we finance product 1 at 10% APR, 5% for Product 2 and 0% for Product 3, which unit would they pick? Compare the present values of each project. Does the term of the loan make a difference?

Compute the PV of each of the three products for 1 through 10 years. Each year to show a PV.

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Business Management, Management Studies

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