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Hello my friends, I need help with a question for project management. The city of Mumbai applies a real MARR of 5% on similar past
Hello my friends, I need help with a question for project management.
The city of Mumbai applies a real MARR of 5% on similar past projects. Assuming the same rate can be applied here, calculate the minimum feasible salvage value for each of the options. Consider the inflation rate will remain the same as over the last five years, when CPI rose from 124.6 to 137.4.
Thank you
A B First Cost Salvage Annual Savings Maintenance Process A A Process B 550,000 650,000 70,000 80,000 50,000 60,000 2000$ / every 2 years $1000 occurs every other year, starting the first year and increases by $600 each time 18 15 Service Life A B First Cost Salvage Annual Savings Maintenance Process A A Process B 550,000 650,000 70,000 80,000 50,000 60,000 2000$ / every 2 years $1000 occurs every other year, starting the first year and increases by $600 each time 18 15 Service Life
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