Answer:
The ESL is 5 years and annual worth is $143,711
Explanation:
If negative values are not allowed, you can enter 143,711 as the annual worth
- DF = Discounting factors are calculated by using the formula 1/1.14.
- CF = cash flows. 3500 is added on annual basis from 3rd year, since the increase is per year.
- Fifth year CF = 45000 is obtained as - 97500 + salvage value ( 210000 * 25%) 52500 = 45000.
- AWF = Annual worth factor is obtained by dividing each year DF with the Total of DF.
- In the last step we multiply CF and AWF to get equivalent annual worth.
Use the following formula:
AW = - 210000 / PVIFA - 87000 [ PV(1)/PVIFA] - 87000 [ PV(2) / PVIFA] - 90500 [ PV(3) / PVIFA] - 94000 [ PV(4) / PVIFA] - 45000 [ PV(5) / PVIFA].
Answer:
Whole product thinking
Explanation:
Since in the question it is mentioned that the tool for design thinking would be help for ART at the time of Increment in program planning so that it would delivered a solution i.e. different from competitive offering , the tool i.e. required is whole product thinking as it measures the actual and expected value how such solution would meet the customer needs
Therefore the above is the answer