Question
On your first assignment as an engineer your boss asks you to develop the utility cost portion of an estimate for the cost of a
On your first assignment as an engineer your boss asks you to develop the utility cost portion of an estimate for the cost of a new manufacturing facility. Draw each cash flow diagram. after some research you define the problem as finding the present worth of utility costs given the following data:
- Your Company uses a minimum attractive rate of return (MARR)+33% as i
-The project has a useful life of 25 years
-utilities to be estimated include electricity , water and natural gas
- THE 35 - YEAR HISTORICAL DATA REVEAL
:Electricity costs increase at 8.6% per year
:water costs increase at 5.5 % per year
: Natural gas costs increase at 6.5% per year
-FIRST-YEAR ESTIMATES OF THE UTILITY COSTS($) ARE AS FOLLOWS
:electricity cost will be $55,000
:water cost will be $18,000
: Natural gas will be $38,000
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