Two design alternatives (X and Y: are being considered for a new ride at the Disney Theme park....

Question

Two design alternatives (X and Y: are being considered for a new ride at the Disney Theme park. Alternative X requires a $400,000 investment and will produce net annual revenue of $ BBB every year. Alternative Y requires a $ 480,000 investment and produces 1st year revenue of $ CCC; thereafter revenue decreases by S3,000 every year. Based on a (AAA + 5:% MARR, which design alternative (X or Y: has the smallest Discounted Payback Period? (AAA-1, BBB-6148, CCC-6148: Please solve using excel

Rochak · Accepted Answer

Sheet1
	Investment 
	X	$400,000
	Y	$480,000
		Cash Flow		Discounted Cash Flow
	Year	X	Y	X	Y
	1	$6,148.00	$6,148.00	$5,800.00	$5,800.00
	2	$6,148.00	$3,148.00	$5,471.70	$2,801.71
	3	$6,148.00	$148.00	$5,161.98	$124.26
	4	$6,148.00		$4,869.79	$0.00
	5	$6,148.00		$4,594.14	$0.00
	6	$6,148.

Two design alternatives (X and Y: are being considered for a new ride at the Disney Theme park. Alternative X requires a $400,000 investment and will produce net annual revenue of $ BBB every year....

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