Nike is looking to produce on of 3 different shoe options. It is your job to decide which shoe to manufacture. The shoe's information is listed below. Please use excel and show equations |
Nike Zoom | Nike Crossfits | Nike Cartwrights | |
Initial Cost | 250,000 | 100,000 | 300,000 |
Profit per year | 30,000 | 14,000 | 42,000 |
Project life | 12 | 15 | 18 |
MARR | 10% | 10% | 10% |
Salvage Value | 10,000 | 0 | 5,000 |
a) What value will you use to compare each item? b) What will be the AEW for the Nike Cartwrights? c) What will be the AEW for the Nike Crossfits? d) What will be the AEW for the Nike Zoom? e) Which shoe brand should you choose to manufacture? |
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