A thermoplastic film manufacturer is trying to decide between four types of thermoforming molding processes to be added to its molding operation. The estimated costs and revenue are shown below. Compare them on the basis of rate of return and determine which process should be selected if the company's MARR is 6% per year.

Question

Quizplus · Accepted Answer

The Answer is IRR V) = 2.66% < 6%; Discard vacuum forming.
Incremental IRR F- D) = 19.43% > 6%; Discard drape forming. Incremental IRR Z- M) = 8.30% > 6%; Discard free blowing.
Pressure forming should be selected.

A Thermoplastic Film Manufacturer Is Trying to Decide Between Four