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6. Two mutually exclusive projects (X and Y) have the estimated cash flows as follows: Project X Project Y First Cost, $ -230,000 -380,000 Maintenance

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6. Two mutually exclusive projects (X and Y) have the estimated cash flows as follows: Project X Project Y First Cost, $ -230,000 -380,000 Maintenance Cost, $/year -9,000 - 12,000 Salvage Value, $ 12,000 140,000 Life, Years 3 6 Which project should be selected based on Present Worth analysis at an interest rate of 12% per year? 7. Determine the capitalized cost of interest rate of 10% per year): $1,000,000 at time , $500,000 at the end of year 5 $125,000 in years 1 through 10, $200,000 per year from year 11 on $300,000 every 3 years starting at the end of year 3 8. A small manufacturing company has established a capital investment limit of $800,000 for the next year for projects that target improved recovery of highly backlash groundwater. Select one or more projects using a MARR of 10% per year. All projects have a 4-year life. Project Initial Investment, $ Net Cash Flow, $/year Salvage Value, $ -250,000 80,000 45,000 -300,000 90,000 10,000 -550,000 200,000 100,000 Y Z

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