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Please give full working clear and easy to understand. Thank you for your help. Unless specified otherwise, all payments are end-of-year (EOY) payments. Not drawn
Please give full working clear and easy to understand. Thank you for your help.
Unless specified otherwise, all payments are end-of-year (EOY) payments. Not drawn to scale $35k R1 R2 $5k/yr $2k/yr 20 10 11 25 $4k g=3% p.a. ci P=$250k Fig. 1 Fig. 1 represents the cashflow of a project. The revenue consists of the R1 and R2 portions. Costs are represented by the initial capital cost P and C1. MARR is 10% p.a. a) Find the PW (at t=0) of the Rl component. (7 marks) b) Represent the R2 component as an equivalent constant annual payment series over the same time period as R2. (7 marks) c) Represent the Cl component as an equivalent constant annual payment series over the same period as C1. (8 marks) d) Calculate the PW of the compound cashflow and determine if the project is feasible. (8 marks) Unless specified otherwise, all payments are end-of-year (EOY) payments. Not drawn to scale $35k R1 R2 $5k/yr $2k/yr 20 10 11 25 $4k g=3% p.a. ci P=$250k Fig. 1 Fig. 1 represents the cashflow of a project. The revenue consists of the R1 and R2 portions. Costs are represented by the initial capital cost P and C1. MARR is 10% p.a. a) Find the PW (at t=0) of the Rl component. (7 marks) b) Represent the R2 component as an equivalent constant annual payment series over the same time period as R2. (7 marks) c) Represent the Cl component as an equivalent constant annual payment series over the same period as C1. (8 marks) d) Calculate the PW of the compound cashflow and determine if the project is feasible. (8 marks)Step by Step Solution
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