Below question is from Oliver Lehmann,
Kindly I need support how to calculate it.
A company has to make a choice between two projects, because the available resources in money and kind are not suffihow cient to run both at the same time. Each project would take 9 months and would cost $250,000.1.The first project is a process optimization which would result in a cost reduction of $120,000 per year. This benefit would be achieved immediately after the end of the project.
2.The second project would be the development of a new product which could produce the following net profits after the end of the project:
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