A new production system for a factory is to be purchased and installed for $154982. This system will save approximately 300,000 kWh of electric power each year for a 6-year period. Assume the cost of electricity is $0.10 per kWh, and factory MARR is 15% per year, and the salvage value of the system will be $9668 at year 6. Using the PW method to analyzes if this investment is economically justified

A- calculate the PW of the above investment and insert the result below.

QUESTION 2

B- Based on the PW value you got in the previous question, is this investment economically justified or not? type your explanation

QUESTION 3

For the below ME alternatives, which machine should be selected based on the PW analysis? MARR=10%

	Machine A	Machine B	Machine C
First cost, $	17632	30000	10000
Annual cost, $/year	9652	6,000	4,000
Salvage value, $	4,000	5,000	1,000
Life, years	3	6	2

Answer the below questions :

A- PW for machine A=

QUESTION 4

For the below ME alternatives , which machine should be selected based on the PW analysis. MARR=10%

	Machine A	Machine B	Machine C
First cost, $	15000	20806	10000
Annual cost, $/year	8964	6,000	4,000
Salvage value, $	4,000	5,000	1,000
Life, years	3	6	2

Answer the below questions :

B- PW for machine B=

QUESTION 5

For the below ME alternatives , which machine should be selected based on the PW analysis. MARR=10%.

	Machine A	Machine B	Machine C
First cost, $	15000	30000	13398
Annual cost, $/year	8055	6,000	4,000
Salvage value, $	4,000	5,000	1,000
Life, years	3	6	2

Answer the below questions :

C- PW for machine C =

QUESTION 6

D- Based on the PW value you got in the previous questions, which machine we should select? type you explanation below

QUESTION 7

for th below two machines and based on CC analysis which machine we should select? MARR=10%.

	Machine A	Machine B
First cost, $	20332	100,000
Annual cost, $/year	12492	7,000
Salvage value, $	4697	-
Life, years	3	infinite

Answer the below question:

A- the CC for machine A=?

QUESTION 8

For th below two machines and based on CC analysis which machine we should select? MARR=10%

	Machine A	Machine B
First cost, $	29601	129434
Annual cost, $/year	13018	8452
Salvage value, $	5328	-
Life, years	3	infinite

Answer the below question:

B- the CC for machine B=?