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There are two alternatives to designing an irrigation network with details given below. By using Future worth method, choose the best economic alternative. (for both
There are two alternatives to designing an irrigation network with details given below. By using Future worth method, choose the best economic alternative. (for both alternatives n=15, i=12%). Initial pipe cost Maintenance The first alternative with length pipes 800 m 4(S/m) $700 at the beginning of the fourth year, then decreasing consistently by $10 per year until the end of the twelve years $1.2*10% increased consistently by $ 0.1*103 per year until the end of the fifth year, thereafter continues with this value (at fifth year) until the end. Annual revenue The second alternative with length pipes 700m Initial pipe cost Maintenance 6(S/m) $300 for first ten years, then increasing consistently by $20 per year until the end. $ 3.8.10 S 1.6*10 Change parts at tenth year Annual revenue Answer only one a) The cost of a construction house is 70*10', how much can rent it monthly to cover the capital during 2 years with interest rate 12% (compounded semi-annual)
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