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PW of savings=? PW of cost= ? Should the project be accelerated? What is the break-even level of increased monthly costs? What is the salvage

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PW of savings=?

PW of cost= ?

Should the project be accelerated?

What is the break-even level of increased monthly costs?

image text in transcribed

What is the salvage value at the end of A years?

What is the annual worth of the new system if the current operating hours are C per year on average?

What is the break-even level of operating hours?

If a project schedule is accelerated, it is possible to complete the project in B-months rather than A-months. This would allow the developer an additional profit of $x per month over the saved time. The cost of acceleration is an extra $Y per month over the B-months of construction. If the interest rate for interim financing is c%, should the project be accelerated? A= B= C= 32 months 26 months 9% $22,700 $5,200 X= Y= A chemical plant is considering installing a new water purification system that costs $X. The expected life is A years and the salvage value is computed using the declining balance method with a depreciation rate of B%. The operating costs are estimated at $y per hour of operation. The expected savings are $z per operating hour. 9% MARR = X= Y= Z= $27,200 $11 per hour $21 per hour 13 years 25% 2100 hours A= B= C=

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