A.)

B.)

C.)

For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $550,000 $650,000 Salvage $70,000 $80,000 Annual Savings $50,000 $60,000 $1000 occurs every other year, starting the first year and increases by $600 each Maintenance $2000 every 2 years time Service Life 18 15 Both processes provide water that is up to Canada's national standards. However, Process B exceeds these standards, but it's difficult to quantify how much this higher quality water is worth. How would you advise the City of Saskatoon to incorporate this difference in quality in their decision? The City of Saskatoon prefers using payback period to evaluate these two investments. It's been a while since I took engineering economics, and I know that payback period is a popular method with clients, but I would like for you to do some digging around and make sure this method is the right way to compare these two options. Please compare payback period to other comparison methods and describe its advantages and disadvantages. Repeat the comparison of processes A and B using Equivalent Uniform Annual Cost (EUAC), assuming an interest rate of 3%. In the space below, show your calculations using factor notation, e.g. (P/F,1,n). For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $550,000 $650,000 Salvage $70,000 $80,000 Annual Savings $50,000 $60,000 $1000 occurs every other year, starting the first year and increases by $600 each Maintenance $2000 every 2 years time Service Life 18 15 Both processes provide water that is up to Canada's national standards. However, Process B exceeds these standards, but it's difficult to quantify how much this higher quality water is worth. How would you advise the City of Saskatoon to incorporate this difference in quality in their decision? The City of Saskatoon prefers using payback period to evaluate these two investments. It's been a while since I took engineering economics, and I know that payback period is a popular method with clients, but I would like for you to do some digging around and make sure this method is the right way to compare these two options. Please compare payback period to other comparison methods and describe its advantages and disadvantages. Repeat the comparison of processes A and B using Equivalent Uniform Annual Cost (EUAC), assuming an interest rate of 3%. In the space below, show your calculations using factor notation, e.g. (P/F,1,n)