Q2&3 Thanku

Problem 2: The activated sludge unit of a wastewater treatment plant requires an aerator. Two options exist. They are shown in the table below. The city owner of treatment plant sets an interest rate of 6% . Considering an analysis period of 10 years. Determine which aerator should be purchased. The market value for Aerator A at the end of 10th year is $80,000. Aerator A Aerator B Initial Cost 350,000 75,000 30,000 500,000 60,000 Annual Operating Cost Salvage Value Lifetime (years) 60,000 15 10 Solve by present worth analysis b. Solve by annual cash flow analysis a. Problem 3: Josh buys a machine for $1000. He has to spend $50 per year for its maintenance costs. Two major maintenances, each for $150, are expected during fifth and seventh years (to be shown at the end of these years on the cash flow diagram). Benefits from the truck follow an arithmetic gradient series with G=$60. He sells the machine at the end of the 10th year for $300. Draw the cash flow diagram from Josh's view-point. What is the net benefit in present worth? Interest rate is 6 %. + rate