Question







Polytec Chemical, Inc. must decide between two additives to improve the dry-weather stability of its low-cost acrylic paint.
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Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

B C D Year 0 1 2 Cash Flow Additive A Additive B $144,000 $175,000 $55,000 $34,000 $55,000 $34,000 $55,000 $34,000 $55,000 $3

Cell reference -

ДА В D Year Cash Flow Additive A 144000 55000 55000 55000 55000 55000 2 ū sazovou Awn- Additive B Incremental Cash Flow 17500

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

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