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2) Three alternatives are being considered in the design of an industrial facility. The cash flow for the three cases is given below. Use
2) Three alternatives are being considered in the design of an industrial facility. The cash flow for the three cases is given below. Use an MARR of 15% and compare the alternatives using the Net Present Value (NPV) and Benefit to Cost Ratio (BCR) methods. Initial cost Yearly Cash Flow Salvage value Service Life Alternative 1 $ 28,000 + $5,500 $1,500 10 years Alternative2 $ 18,000 + $2,400 0 10 years Alternative 3 $ 24,000 +$4,800 $ 500 10 years
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