ENGG522 - MG Special Projects/Case Guideline: 1. Choose either case 1 or case 2 2. Choose additional 1 case (from cases 3 to 6) to solve from among the given choices. Hence total cases to work/solve is 2. 3. For the 2 cases, solve the following and present the solution in structured manner a. Payback period b. Profitability index C. Internal Rate of Return d. Break-even Analysis (if applicable) e. Depreciation schedules (use one method only) f. PW, AW, or FW Analysis (use one method only) 4. Submit the answer through moodle Case 1: An engineering company is considering the purchase of one of two computer systems. System 1 is based on small. Decentralized personal computers and has an initial cost of BD100,000. These will be replaced in five (5) years at a cost of BD100,000. The salvage value is BD10,000 at the end of years 5 and 10. It is estimated that the benefits for the first five (5) years will be BD30,000 per year, and the second five (5) years, is BD60,000 System 2 is based on a larger, more powerful work stations and has an initial cost of BD500,000. The replacement will occur at the end of year ten (10), where the salvage value is BD5,000. The amount of benefits is estimated to be BD90,000 per year over the ten (10) years period. The company uses a 10% interest rate. Which system should the company purchase? Case 6: A commercial fitness and gym equipment's company is considering setting up a gym with a land that can be purchased for BD400,000. Construction cost for the gym equipments and the decoration is planned to be BD250,000 and the additional annual maintenance costs for the gym are projected to be BD100,000. The one year package is BD200/person and it's predicted to have 1,000 trainers each year with 30% of them going to have a massage once a month for BD15