Engineering Economy Class

S.ABB purchased fieldbus communication equipment for a project in South Africa for $3.15 million. The net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated regardless of when it is sold. Determine the number of years the equipment must (20 points) be used to obtain payback at MARR values of: (a) 0% and 8% per year (b) 15% and 16% per year