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Problem 2 Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for
Problem 2 Potable water is in short supply in many countries. To address this need, two mutually exclusive water purification systems are being considered for implementation in China. Doing nothing is not an option. Refer to the data below and state your key assumptions in working this problem. System 1 System 2 Capital investment Annual revenues Annual expenses MV at end of useful life Useful life $100.000 50,000 22.000 20.000 5 years $150,000 70.000 40,000 0 10 years a. Use the PW method to determine which system should be selected when MARR = 8% per year. b. Which system should be selected when MARR = 15% per year
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