Q2) A company invests in one of three alternatives which has the cashflow as represent in the table below, suggest the best Project using theEquivalent Annual Worth Method if you know that the interest rate is(12%).Purchasing Salvage(CU/ equipment value(CU)400 000 300 000Project 2 1900 000 | 600 000 | 150 000 300 000 | 500 0002800 000 500 000 500 000 175 000 | 450 000InvestmentcostrevenueLifeDetailsamount(CU/year)(year)(CU)Project 1(CU)2200 000400 000_year)100 00043Project 34All projects need a maintenance for some machines every three years(CU) which equal to 100 000 CU for all projects.

Details Investment Amount Revenue Cost Purchasing cost Salvage Value Life Project 1 2200000 400000…

Q2) A company invests in one of three alternatives which has the cash flow as represent in the table below, suggest the best Project using the Equivalent Annual Worth Method if you know that the interest rate is (12%). Purchasing Salvage (CU/ equipment value (CU) 400 000 |300 000 | Investment cost revenue Life Details amount (CU) |(CU/year) (CU) (year) уcar) Project I| 2200 000 | 400 000 | 100 000 4 3 Project 2 | 1900 000 Project 3 2800 000 600 000 150 000 500 000 | 500 000 300 000| 500 000 175 000 | 450 000 4 All projects need a maintenance for some machines every three years (CU) which equal to 100 000 CU for all projects.

Q2) A company invests in one of three alternatives which has the cash flow as represent in the table below, suggest the best Project using the Equivalent Annual Worth Method if you know that the interest rate is (12%). Purchasing Salvage (CU/ equipment value (CU) 400 000 |300 000 | Investment cost revenue Life Details amount (CU) |(CU/year) (CU) (year) уcar) Project I| 2200 000 | 400 000 | 100 000 4 3 Project 2 | 1900 000 Project 3 2800 000 600 000 150 000 500 000 | 500 000 300 000| 500 000 175 000 | 450 000 4 All projects need a maintenance for some machines every three years (CU) which equal to 100 000 CU for all projects.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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