As an engineer, you are responsible to find the best alternative that is economically best. The cash flows shown in the table and the MARR is 11 % per year. Then please answer the following questions. Cash Flow Project 01 Project 02 Project 03 First Cost, $ -90000 260000 270000 Annual Cost, $ Per Year -40000 -20000 -12000 Overhaul Every 10 Years, $ -70000 Salvage Value, $ 5000 27000 77000 Life, Years 3 10 a) Find the Aw for Project 01. b) calculate the AW for Project 02 c) Calculate Aw for Project 03. What is your decision? Explain it briefly in the text box and upload your handwritten solution.

As an engineer, you are responsible to find the best alternative that is economically best. The cash flows shown in the table and the MARR is 11 % per year. Then please answer the following questions. Cash Flow Project 01 Project 02 Project 03 First Cost, $ -90000 260000 270000 Annual Cost, $ Per Year -40000 -20000 -12000 Overhaul Every 10 Years, $ -70000 Salvage Value, $ 5000 27000 77000 Life, Years 3 10 a) Find the Aw for Project 01. b) calculate the AW for Project 02 c) Calculate Aw for Project 03. What is your decision? Explain it briefly in the text box and upload your handwritten solution.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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