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Q1. Ma'amalat Ltd is considering investing in a new patterning attachment with the cash flow profile shown in the Table 1. Ma'amalat Ltd's MARR is

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Q1. Ma'amalat Ltd is considering investing in a new patterning attachment with the cash flow profile shown in the Table 1. Ma'amalat Ltd's MARR is 18%/year. Table 1: The pertinent data of Ma'amalat Ltd Cash Flow 0 -$1,400 1 SO 2 $500 3 $500 4 $500 5 $500 6 $0 7 $500 Assume MARR is 18% per year. IRR, Determine; What is the IRR of this investment? What is the decision rule for judging the attractiveness of investments based on IRR? Should Ma'amalat Ltd invest? Q2. The management team of Al-Nor Company for Infrastructure Engineering is considering three alternatives to satisfy an OSHA requirement for safety gates in their mechanical laboratories. Each gate will completely satisfy the requirement, so no combinations need to be considered. The first costs, operating costs, and salvage values over a 5-year planning horizon are shown in Table 2 Table 2: The pertinent data of Al-Nor Company for Infrastructure Engineering End of Year Gate 1 Gate 2 Gate 3 -$24,000 0 1 2 -S15.000 -$6.500 -S6.500 -S6,500 -S6.500 -S6.500-50 -$19.000 -$3,600 -55,600 -55,600 - 55,600 - 55,600-$2.000 -S4.000 -S4.000 -S4.000 3 4 -S4.000 -S4.000 55.000 Using an annual worth analysis with a MARR of 20%/year, Determine the preferred gate! 2 of 2

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