Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

plz help Welcome to Muninsight, Canada's largest consulting firm dedicated to helping municipalities make strategic decisions using best practices in engineering economics and project management

image text in transcribed plz help
image text in transcribed
Welcome to Muninsight, Canada's largest consulting firm dedicated to helping municipalities make strategic decisions using best practices in engineering economics and project management As an entry-level project engineer, you will be working remotely for the first few months of your job. But you are still an essential part of the Muninsight team. We've been asked by the City of Saskatoon to choose between two new water reclamation options. They've provided us with a fairly complete set of documents, so you don't need to look around for information beyond what's included here. The turn-around for this assignment is fairly tight - 72 hours. But that should be more than enough time for you to complete your calculations and develop some guidance for the City of Saskatoon. Remember, this is your first impression for us, and our first impression for the client, so take the time to edit and fine-tune your language. I've provided you with fairly strict word limits. They don't have a lot of time to read the details, so make sure you explain the necessary information succinctly. That will mean a bit of time editing your text to make sure it is informative and clear. For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $550,000 $650,000 Salvage $70,000 $80,000 Annual Savings $50,000 $60,000 $1000 occurs every other Maintenance $2000 every 2 years year, starting the first year and increases by $600 each time Service Life 18 15 The City of Saskatoon has applied 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. In the space below, show your calculations using factor notation. Welcome to Muninsight, Canada's largest consulting firm dedicated to helping municipalities make strategic decisions using best practices in engineering economics and project management As an entry-level project engineer, you will be working remotely for the first few months of your job. But you are still an essential part of the Muninsight team. We've been asked by the City of Saskatoon to choose between two new water reclamation options. They've provided us with a fairly complete set of documents, so you don't need to look around for information beyond what's included here. The turn-around for this assignment is fairly tight - 72 hours. But that should be more than enough time for you to complete your calculations and develop some guidance for the City of Saskatoon. Remember, this is your first impression for us, and our first impression for the client, so take the time to edit and fine-tune your language. I've provided you with fairly strict word limits. They don't have a lot of time to read the details, so make sure you explain the necessary information succinctly. That will mean a bit of time editing your text to make sure it is informative and clear. For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $550,000 $650,000 Salvage $70,000 $80,000 Annual Savings $50,000 $60,000 $1000 occurs every other Maintenance $2000 every 2 years year, starting the first year and increases by $600 each time Service Life 18 15 The City of Saskatoon has applied 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. In the space below, show your calculations using factor notation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Finance questions