Gary corporation produces products x, y, and z from a single raw material input. budgeted data for the next month is as follows: if the cost of raw material input is $150,000, which of the products should be processed beyond the split-off point?

Consider the following two projects. both have costs of $5,000 in year 1. project 1 provides benefits of $2,000 in each of the first four years only. the second provides benefits of $2,000 for each of years 6 to 10 only. compute the net benefits using a discount rate of 6 percent. repeat using a discount rate of 12 percent. what can you conclude from this exercise?