Question

Calculate the following using the Table Provided:

a) The best of the three (3) harvesters based on the NFW decision criterion.
b) The best of the three (3) harvesters based on the AEW decision criterion.
c) Beta’s recovery period (years) based on the simple payback decision criterion.
d) Gamma’s “project balance” at EOY2 using the simple payback decision criterion.
e) Alpha’s “project balance” at EOY3 using the discounted payback decision
criterion.
f) Gamma’s “project balance” at EOY2 using the discounted payback decision
criterion.

Answer 1

Answer:

a) The best of the three (3) harvesters based on the NFW decision criterion.

b) The best of the three (3) harvesters based on the AEW decision criterion.

c) Beta’s recovery period (years) based on the simple payback decision criterion.

d) Gamma’s “project balance” at EOY2 using the simple payback decision criterion.

e) Alpha’s “project balance” at EOY3 using the discounted payback decision

criterion.

f) Gamma’s “project balance” at EOY2 using the discounted payback decision

criterion.

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Answer 2

Answer:

1. The best of the three (3) harvesters based on the NFW decision criterion.
2. b) The best of the three (3) harvesters based on the AEW decision criterion.
3. c) Beta’s recovery period (years) based on the simple payback decision criterion.
4. d) Gamma’s “project balance” at EOY2 using the simple payback decision criterion.
5. e) Alpha’s “project balance” at EOY3 using the discounted payback decision
6. criterion.
7. f) Gamma’s “project balance” at EOY2 using the discounted payback decision
8. criterion.