1) A person invested SR X in an account that pays Y% compounded annually. The first withdraw happens at the end of year 3. The payments increase at 5% every year until the end of 6th year. Thereafter, the payments decrease by SR Z every year. The planning horizon is W years. Calculate the value of the first withdraw such that this investment is attractive (Use PW analysis) Serial Number Value of X Value of Y Value of Z Value of W 2.- 26-30 and 45-49 A44 2,200,000 200.000 15% 1,000 17 FA 2) A technology company is planning to purchase one of two chips. Due to the pace of technological change in this area, it is realistic to assume that these are one-shot investments. The expected cash flows for each machine are shown below. MARR is P % per year. Which alternative is preferred (use FW analysis) Alternative 1 Alternative 2 SRX SRY W years Initial investment Expected life Z years Salvage Value SR 35,000 Annual Income SR 60,000 Annual SR 30,000 Expense 0 SR 85,000 SR 15,000 Serial Number Value of x Value of Value of Value of Value of Y z W P 100,000 300,000 5 7 5 1-5, and 45-49 3) Two public projects are being considered. The first project has a construction cost of SR X. The operating cost is SR 40,000 annually and maintenance is required every 5 years of the amount SR Z. The second project has a one-time initial cost SR Y with an annual operating cost of SR 80,000 and requires maintenance of SR W every 3 years. Assume R% MARR. Using capitalized cost analysis, calculate the CC for the first and second projects and then decide which alternative should be chosen. Serial Number Value of x Value of Y Value of Z 2,000,000 1,000,000 40,000 Value of Value of W R 30,000 5 31,35, and 45-49