Question

Nike is looking to produce on of 3 different shoe options. It is your job to...

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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