1. A university laboratory is studying the use of a new fuel cell system for use in space travel. The cost of acquiring the fuel cell system is $4500 and the annual operating cost is $900. The fuel cell can be sold at $200 at the end of the 8-year study period. Use the Present Worth Method to determine whether the fuel cell system is a good investment. Use an MARR of 10% per year.
2. A semiconductor company is considering the use of an ultrapure water system in its operations. The necessary equipment can be purchased at $20 million and will have a salvage value of 5% of its purchase cost at the end of the 10-year study period. Annual operating cost will amount to $0.5 million. Using ultrapure water can also save the company $1 million per year. Use the Future Worth Method to determine whether the purchase of the ultrapure water system is a good investment. Use an MARR of 15% per year.