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Assignment - PW Technique . Please understand you must answer all parts IN THE ORDER given. Just giving the correct answer will get NO POINTS.
Assignment - PW Technique . Please understand you must answer all parts IN THE ORDER given. Just giving the correct answer will get NO POINTS. Follow the model given in class. When you draw the time-line diagram, you need to show the time periods on the diagram. Consider an installation of a power project with a 5-7r life. Two alternatives are considered SOLAR and Gas. The cash flow table is shown. The salvage values are $200 and $350 respectively, Salvage values are positive cash flows. Cash Flow table for the TWO alternatives are shown below: Year Electric alt. Gas alt. 0-2500-3500 1 thru 4-900-700 5-900-700 +200 +350 a. Develop the cash flow TABLE for the two alternatives, ELECTRIC & GAS b. Draw the cash flow DIAGRAM for the two alternatives. c. Determine the PRESENT WORTH (PW) for the two alternatives. [PW method requires PW Benefits and PW Costs] using an i of 10% per year. d. Create the summary table. e. State selection criteria and make the decision which alternative to fund
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