a. Calculate using the PW method if the useful life is 50 years and the MARR is 10% per year and determine which is the best alternative.b. If the useful life of project A is 25 years, project B and project C are 50 years each, using the AW method, which project will be selected.attached:Investment: A = $8.500.000B $10.000.000C= $12.000.000O & M annual: A $750.000B = $725.000C = $700.000Salvage value: A = $1.250.000B = $1.750.000CS2.000.000annual benefits: A = $2.150.000B = $2.265.000C = $2.500.000
a. Calculate using the PW method if the useful life is 50 years and the MARR is 10% per year and determine which is the best alternative.b. If the useful life of project A is 25 years, project B and project C are 50 years each, using the AW method, which project will be selected.attached:Investment: A = $8.500.000B $10.000.000C= $12.000.000O & M annual: A $750.000B = $725.000C = $700.000Salvage value: A = $1.250.000B = $1.750.000CS2.000.000annual benefits: A = $2.150.000B = $2.265.000C = $2.500.000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a. Calculate using the PW method if the useful life is 50 years and the MARR is 10% per year and determine which is the best alternative.
b. If the useful life of project A is 25 years, project B and project C are 50 years each, using the AW method, which project will be selected.
attached:
Investment: A = $8.500.000
B $10.000.000
C= $12.000.000
O & M annual: A $750.000
B = $725.000
C = $700.000
Salvage value: A = $1.250.000
B = $1.750.000
CS2.000.000
annual benefits: A = $2.150.000
B = $2.265.000
C = $2.500.000
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