ng two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative P Alternative Q First cost, $ 18,000 35,000 Annual operating cost, S/year 4,000 3,600 Salvage value, S 1,000 2,700 Life, years 3. 6. You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is: O0--17,000 + 400(PIAL6) + 17,000(P/F13) + 1700(P/F,6) O0-17,000 + 400(P/A,6) - 17,000(P/FL3) + 1700(P/F,6) O-17,000+ 400(P/F6)+ 17,000(P/AL3) + 1700(P/F1,6) 6-17,000 + 400(P/AL6) - 17,000(P/AL.3) - 1700(F/AL6)

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Your friend is considering two solar systems for her house water heating requirements. Her MARR is 20% per year.
Alternative P
Alternative Q
First cost, S
18,000
35,000
Annual operating cost, S/year
4,000
3.600
Salvage value, S
1,000
2.700
Life, years
You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is:
O 0--17,000+ 400(PIAL6) + 17,000(P/F13) + 1700(P/F,L6)
O0- 17,000 + 400(PIA6) - 17,000(P/F1,3) + 1700(P/F,6)
O 0= -17,000 + 400(P/FL6) + 17,000(P/AL3) + 1700(P/F1,6)
6o-17,000 + 400(P/AL6) - 17,000(P/A1,3) - 1700(F/AL6)
Transcribed Image Text:Your friend is considering two solar systems for her house water heating requirements. Her MARR is 20% per year. Alternative P Alternative Q First cost, S 18,000 35,000 Annual operating cost, S/year 4,000 3.600 Salvage value, S 1,000 2.700 Life, years You need to assist her by finding the incremental cash flow over an appropriate analysis period. The equation that should be use to find the rate of return for the incremental cash flow is: O 0--17,000+ 400(PIAL6) + 17,000(P/F13) + 1700(P/F,L6) O0- 17,000 + 400(PIA6) - 17,000(P/F1,3) + 1700(P/F,6) O 0= -17,000 + 400(P/FL6) + 17,000(P/AL3) + 1700(P/F1,6) 6o-17,000 + 400(P/AL6) - 17,000(P/A1,3) - 1700(F/AL6)
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