ABSTRACT
Determine the most economical solution. Determine the most economical solution using the team’s own assumptions.
Answer: Alternate process by $7.9 million using 3% escalation 3. The financial institution is considering two proposals for a process/product
improvement project One alternative is to continue using process/product A to produce_____.The other alternative is to use the value team’s recommendation to use process/product B to produce_____ for its customers. Using the information below determine which alternative is the most cost effective. The process/product has a 5-year life. Use a discount rate of 3% to perform an alternative analysis. Process/Product A
Determine the most economical solution. Answer: Alternate Process/Product B, by $381,000
4. The manufacturer is considering three proposals for a program improvement project One alternative is to continue using the following assumptions to produce____. The other two alternatives use the value team’s recommendation using the following assumptions to adjust the program produce_____. Using the information below determine which alternative is the most cost ef-fective. The process has a 10-year life. Use a discount rate of 5% to perform an alternative analysis. Existing Program
Determine the most economical solution(s). The team may change the assumptions based on their variables/parameters.
