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I have attached two screen shots of the questions. Question 4: A reactor in the plant you are running is nearing the end of its

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Question 4: A reactor in the plant you are running is nearing the end of its useful life, and will have to be replaced. You have identified two suitable alternatives for the replacement. The cash flows for both alternatives are shown in Table 1. The company uses a MARR of 12%. Table 1 Year Reactor A Reactor B -100,000 -100,000 25,000 30,000 26,000 30,000 GUAWNHC 27,000 30,000 28,000 30,000 29,000 30,000 30,000 30,000 IRR 15.91% 19.91% (i) Based on the cash flows above, one should choose: (a) Reactor B because it has a higher IRR (b) Reactor A because it has a lower IRR (c) Reactor A because an increment analysis shows that IRR on the increment is less than the MARR (d) Reactor B because compared to A, it has a higher IRR for the same initial investment (e) None of the above (ii) Using the company MARR as the applicable interest rate, calculate the EACF for Reactor B.Question 2: Your company is tasked with designing and building a new geothermal power generation plant for a remote community. The plant is intended to last forever. Your analysis suggests it will cost $20,000,000 to build. Starting the year after it is constructed, it will cost $250,000 a year to operate. You estimate that 8 years after construction, an overhaul costing $5,000,000 will be required, and that a similar overhaul will be required every 4 years after that, in perpetuity. If construction (and all of its associated costs) takes place 3 years from today, then the determine the amount of money that must be placed in an investment account today to fund the project in perpetuity (forever), at an interest rate of 9%, compounded quarterly

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