Complete each problem in excel. Submit your excel worksheet in EXCEL format so I can see how you solved the problems. Please MARK or Outline your answers so I can tell where they are. Create a CASH Flow chart and answer the following questions. The equipment will cost $620,000 and lasts the entire 11 year project. At the end of 11 years, the equipment will be sold for $91,000 in salvage. Operating costs start at $108000 and go up by 3.9% every tear. Benefits begin at $190000 and go up by 6.1% every year. The MARR value is 14%   Use a MARR of 14% BUILD the CASH FLOW chart for this project. 3a. Determine the NPW 3b. Determine the AW 3c. Determine the FW

ENGR.ECONOMIC ANALYSIS
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Complete each problem in excel. Submit your excel worksheet in EXCEL format so I can see how you solved the problems. Please MARK or Outline your answers so I can tell where they are.

Create a CASH Flow chart and answer the following questions.

The equipment will cost $620,000 and lasts the entire 11 year project.

At the end of 11 years, the equipment will be sold for $91,000 in salvage.

Operating costs start at $108000 and go up by 3.9% every tear.

Benefits begin at $190000 and go up by 6.1% every year.

The MARR value is 14%

 

Use a MARR of 14% BUILD the CASH FLOW chart for this project.

3a. Determine the NPW

3b. Determine the AW

3c. Determine the FW

3d. Determine the IRR

3e. Graph the NPW versus MARR

3f. Are we making or losing money at 14% MARR?

How can you tell? 

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