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Case 2: An engineer must choose between two pumps for use in a water distribution system. Both pump A and pump B will deliver water

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Case 2: An engineer must choose between two pumps for use in a water distribution system. Both pump A and pump B will deliver water at an adequate flow rate and pressure head. The data for the two pumps are given below: Item Initial Cost (BD) Operating Cost per year (BD) Lifetime (years) Salvage Value (BD) Pump A 200,000 30,000 12 10,000 Pump B 300,000 23,000 12 60,000 If the interest rate is charge at 7%: a) which pump are you going to choose? b) If the lifetime of pump B is changed to 16 years, and the analysis period is 48 years, which pump is better? Case 3: XYZ company would like to start a company with an initial investment of BD 50,000. The company would generate a revenue of BD 20,000 every year, and the investment has a life of 5 years. After 5 years, the company would have no market value. The company produces a generator soundproofing unit that is a requirement for generators above 1000mw by law. The fixed cost (CF) is BD 73,000 per month, and the variable cost (cv) is BD 83/unit. The selling price per unit (P) =180-0.02D. Case 4: A city is considering extending the runways of its municipal airport so that commercial jets can use the facilities. The land necessary for the runway extension is currently a farmland that can be purchased for BD350,000. Construction cost for the runway extension are projected to be BD600,000 and the additional annual maintenance costs for the extension are estimated to be BD22,500. If the runways are extended, a small terminal will be constructed at a cost of BD250,000. The annual operation and maintenance cost for the terminal are estimated at BD75,000. Finally, the projected increase in flight will require he addition of two air traffic controllers at an annual cost of BD100,000

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