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Point break down Cash fow diagrams ( 20% ) Conect clear method, showing all work (05% ) For maximum credit, use advanced techniques (series or

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Point break down Cash fow diagrams ( 20% ) Conect clear method, showing all work (05% ) For maximum credit, use advanced techniques (series or gradients) where possible, not just (PF Ln) or (FP n Comect math & interest factors from interest tables (10% ) Corect answer (5% ) Show equations in functional notation before substituting in numbers Show all calculations Look up interest factors in the tables whenever possible Problem 2. /30 points) Cash flow diagrams required a) Based on annual cash flow analysis and i 2% , which alternative should be chosen to perform a task in the manufacturing plant? Remember to identify the type of problem and the corresponding selection criterion. State if identica replacement is assumed (where/when) or not assumed. b) Explain your choice in terms of the selection criterion. Machine 1 Machine 2 Initial cost (S) Annual maintenance costs ($/year) Salvage value (S) Useful life (years) 12.000 10,000 2000 2500 1500 8 1000 4

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