Problem#1 The following data applies to a new system to be implemented in a company Investment cost n 0: $ 10,000 Investment cost for n 1:$ 15,000 Lifespan: 10 years residual value (end of 11): $5,000 Annual income: $ 12,000 per year annual expenses of $ 4,000 per year MARR: 10 % Note: The first income and expenses occur at the end of year 2 requirements: TO. Determine the conventional recovery period Accumulated Cash Flow Cash flow Period cS Scanned with CamScanner Scanned with CamScanner Accumulated Period Cash flow Cash Flow Use this space to perform linear approximation which will produce the value of n. cS Scanned with CamScanner Scanned with CamScanner B. Determine the discounted recovery period Acoumulated Cash Flow Cash flow Cost of Funds Period cS Scanned with CamScanner Scanned with CamScanner Use this space to perform linear approximation which will produce the value of n. cS Scanned with CamScanner Scanned with CamScanner Problem # 2 The company "Delaware Chemicals" is considering installing a process control system for a computer. This plant is used 40 % of the time or 3.500 hours operation per year to produce a chemical demulsification. During the 60% remaining time is used to produce other chemicals. The annual production of the chemical demulsification is 30.000 kg per year and sold in $15 per kilogram. The proposed control system cost $ 65,000 and it is expected to provide specific benefits in the production of chemical follows: The selling price of the product may increase $2 per kilogram because the product wil be of higher purity, which results in improved performance of demulsification Production volumes can be increased by 4,000 kilograms per year due to higher reaction yields, without any increase in the requirements of the quantities of raw material or production time. The number of process operators can be reduced by one in turn, representing savings 25 per hour. The new control system will result in additional maintenance costs by S 53,000 per year and it has an expected lifetime of 8 years Request Determines the net present value (PNW) for the ife of the project. Uses a MAR 15 % Begin by determining what the chemical reven cs Scanned with CamScanner Scanned with CamScanner Determine the benefits of the control system. These include the change in revenue in the first year, increasing this income in terms of a linear gradient, and savings from the new system. Determine the net profits and set the chart below. cs Scanned with CamScanner Scanned with CamScanner Calculate the present value flows presented in the graph. cS Scanned with CamScanner Scanned with CamScanner