3. An industrial coal-fired boiler for process steam is equipped with a 10-year-old electrostatic precipitator (ESP). Changes in coal quality have caused stack emissions to be in noncompliance with federal standards for particulates. Two mutually exclusive alternatives have been proposed to rectify this problem (doing nothing is not an option). Capital investment Annual operating expenses Useful Life New Baghouse $1,140,000 $115,500 10 years New ESP $992,500 $73,200 10 years The MARR is 9% per year. Make a recommendation regarding which alternative to select.

7. ratio analysis. Interest rate is 4%. For the data below, select the best alternative using the incremental AB/AC Initial cost Annual benefit 45,000 Salvage value Life $230,000 $200,000 39,000 35,000 $220,000 41,000 50,000 50,000 5 years

ASAP! Please show by hand or if you use excel show the formulas that were used within the cells. Thank You!

Edinburgh                                           Newcastle                                                                £000                                         £000Franchise fee (year 0)            8,700                                               7,950New buses (year 0)                4,120                                              3,890Scrap value (year 5)                 110                                                    95Forecast net cash inflowsYear 1                                     3,780                                           3,500Year 2                                     4,150                                           3,850Year 3                                     4,550                                           4,200Year 4                                     5,120                                           5,150Year 5                                     4,900                                           4,950   calculate the payback period for both the…