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1. The equivalent annual worth of an increasing arithmetic gradient is $135,300. If the cash flow in year 1 is $35,000 and the gradient amount
1. The equivalent annual worth of an increasing arithmetic gradient is $135,300. If the cash flow in year 1 is $35,000 and the gradient amount is $19,000, what is the value of n at an interest rate of 10% per year? [4] 2. The cash flows (in KD) for two mutually exclusive alternatives in Kuwait are as in the table below: [4] B-A -3,000 -12,000 -9,000 1 1,350 4,200 w 2,850 2 1,800 6,225 4,425 3 1,500 6,330 4,830 RoR (%) 14 19 a. Which project would you select at MARR = 16%? Why? [2] b. Which of the two alternatives is not financially viable? Why? [2]
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