The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as shown in the table. Assume that the MARR is 10% per year, the study period is six years, and the market value is zero for all three designs. Apply an equivalent-worth analysis method to determine the preferred alternative. Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Perform the incremental PW Analysis. Fill-in the table below (Hint: Order alternatives by increasing capital investment). (Round to the nearest hundreds.) Alternative Inc. PW Is the alternative acceptable? ( Data Table Design ER1 ER2 - $97,000 24,000 - $105,000 32,000 ER3 - $81,200 19,750 OO- NO f = 7%a G = $2006 33,661 33.000 19.750 Enter your answer in t 3 remaining 2 parts After year one, the annual savings are estimated to increase at the rate of 7% per year. After year one, the annual savings are estimated to increase $200 per year. Uniform sequence of annual savings. neck Answer The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as shown in the table. Assume that the MARR is 10% per year, the study period is six years, and the market value is zero for all three designs. Apply an equivalent-worth analysis method to determine the preferred alternative. Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 7% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Perform the incremental PW Analysis. Fill-in the table below (Hint: Order alternatives by increasing capital investment). (Round to the nearest hundreds.) Alternative Inc. PW Is the alternative acceptable? ( Data Table Design ER1 ER2 - $97,000 24,000 - $105,000 32,000 ER3 - $81,200 19,750 OO- NO f = 7%a G = $2006 33,661 33.000 19.750 Enter your answer in t 3 remaining 2 parts After year one, the annual savings are estimated to increase at the rate of 7% per year. After year one, the annual savings are estimated to increase $200 per year. Uniform sequence of annual savings. neck
