Respuesta :
Answer:
The three different alternatives have positive NPVs. The alternative with the highest NPV is alternative 3, to develop and launch both satellites (NPV = $241,891). This alternative also has the highest IRR (12.1%). So Calisto should work on both satellites.
Explanation:
satellite 1 satellite 2
initial cost $750,000 $850,000
if 2 satellites developed $150,000
development cost year 1 $150,000 $120,000
if 2 satellites developed $130,000
development cost year 2 $150,000 $120,000
if 2 satellites developed $130,000
development cost year 3 $150,000 $120,000
if 2 satellites developed $130,000
development cost year 4 $150,000 $120,000
if 2 satellites developed $130,000
development cost year 5 $150,000 $120,000
if 2 satellites developed $130,000
launch vehicle cost year 5 $275,000
if 2 satellites developed $75,000
revenue from launching $2,500,000 $2,500,000
bonus for launching both $1,000,000
MARR = 10%
since there is not enough room here, I used an excel spreadsheet to calculate NPVs of launching satellite 1, satellite 2 or both.