A textile processing company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprietary oxypure process. The relevant information for each process is shown. Use an interest rate of 15% per year to perform the replacement study. Additionally, write the PMT functions that display the information necessary to make the decision.
AWD = -25,000(A/P,15%,3) - 190,000
= $-200,950
AWC = -600,000(A/P,15%,10) – 70,000 + 50,000(A/F,15%,10)
= $-187,088
Select the challenger
Spreadsheet functions:
Defender: = -PMT(15%,3,-25000) -190000 displays AWD
Challenger: = -PMT(15%,10,-600000,50000) – 70000 displays AWC
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