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Solve Question 2,3 and 4 step by step using Engineering economy formula to each question Question 02 [A Mr. Kamran had some savings that he

Solve Question 2,3 and 4 step by step using Engineering economy formula to each question

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Question 02 [A Mr. Kamran had some savings that he placed in a bank account ten years ago. He earned an amount of $2, 968,000 from an initial investment. The investment plan he chose was such that it earned an interest of 6.5% for the first three years, 4.5% for the next two years, 7.4% for the next four years and 8% for last/tenth year. He also made a withdrawal of Rs. 85,25,000 at year 5. Draw the cash flow for this scenario and evaluate the initial investment that Mr. Kamran had made. Question 03 [ Bahria Orchard is establishing a sugar mill with the resources from its estate business. The initial investment required for the sugar mill is land costs of $150,000, raw material of $250,000, working capital of $760,000, construction costs of $650,000 and estimated hidden costs of $300,000. It is expected that the revenue from the mill will reach up to $1,050,000 per year. The annual expenses for labor, electricity, fuel and other items will sum up to $375,000 per year. The raw materials worth $150,000 and the hidden costs worth $250,000 remains unused by the end of 15 years (Hint: Salvage values). If the company requires an MARR of 9% on return, determine if it should invest in this mill? Use AW method to support your argument. Verify your argument using PW or FW method. Question 04 1 The Government Treasury Bond that matures in 10 years has a face/Par value of $20,000 and earns at the rate of 5%. If the yield rate applied is 8% compounded quarterly; How much is the worth of this bond at present time in order to buy this bond

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