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please answer both parts Problem 1 (40%) Given the following conditions: 20% 10 million dollars 2 million dollars 2 million dollars MARR per year Capital
please answer both parts
Problem 1 (40%) Given the following conditions: 20% 10 million dollars 2 million dollars 2 million dollars MARR per year Capital investment at time 0 Capital investment at year 1 Market value at year seven Annualrevenues EOY: end of year EOY two EOY three EOY four EOY five EOY Six EOY seven Annual expenses from year 2 to year 7 Study period 5 million dollars 10 million dollars 10 million dollars 10 million dollars 9 million dollars 8 million dollars 2 million dollars per year 7 years Draw a cash-flow diagram for this project Estimate the annual worth for this project Is this project economically attractive? Problem 2 (20%) Estimate the simple payback period and the discounted payback period assuming 20% interest rate per year for problem 1 Step by Step Solution
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