Selecting Capital projects
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Solution Summary
An easily read and understood example of evaluating profitability, return on investment, and selecting capital projects.
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Computer A has a book value of $1,500, and a current re-sale value of $800. The computer is needed to fulfill a client order, but if it's used on this project then its re-sale value will be zero.
The contract is valued at $5,000. $2000 has already been spent on specialized software, which will be used on the project.
A printer is needed for a separate project, costing $400.
Computer A book value ...
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