There are two customers requiring three-phase electrical service, one existing at location A and a new customer at location B. The load at location A is known to be 110 KVA, and at location Bit is contracted to be 280 kVA. Both loads are expected to remain constant indefinitely into the future. Already in service at A are three 100-KVA transformers that were installed some years ago when the load was much greater. Thus, the alternatives are as follows: Alternative A: Install three 100-kVA transformers (new) at B now and replace those at A with three 37.5-kVA transformers only when the existing ones must be retired. Alternative B: Remove the three 100-KVA transformers now at A and relocate them to B. Then install three 37.5-KVA transformers (new) at A. The existing transformers have 10 years of life remaining. Suppose that the before-tax MARR = 9% per year. Use the capitalized worth method to recommend which action to follow. Assume an infinite analysis period with repetitive cycles of replacement and ignore income taxes. Click the icon to view the table for data for both alternatives. Click the icon to view the interest and annuity table for discrete compounding when MARR = 9% per year. The CW value for the alternative A is $(Round to the nearest dollar.) The CW value for the alternative B is s (Round to the nearest dollar.) Alternative B is more economical. Existing and New Transformers Three 37.5 kVA Three 100-KVA Capital Investment Equipment Installation Property tax Removal cost $1,100 $360 2% of capital investment $120 $120 25 $2,300 $510 2% of capital investment $450 $450 25 Market value Useful life (years) Print Done Discrete Compounding; i = 9% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor Capital Recovery Factor To Find F Given P FIP To Find P Given F P/F To Find F Given A FIA To Find A Given F A/F To Find A Given P A/P N To Find P Given A P/A 0.9174 1.7591 2.5313 1 0.9174 1.0000 1.0900 1.0900 1.1881 2 0.8417 0.4785 0.5685 1.0000 2.0900 3.2781 4.5731 3 1.2950 0.7722 0.3051 0.3951 4 1.4116 3.2397 0.3087 0.2187 0.1671 5 0.7084 0.6499 0.5963 1.5386 5.9847 3.8897 0.2571 6 7.5233 4.4859 0.2229 1.6771 1.8280 0.1329 0.1087 7 0.5470 9.2004 5.0330 0.1987 8 1.9926 11.0285 5.5348 0.0907 0.1807 9 2.1719 0.5019 0.4604 0.4224 0.0768 13.0210 15.1929 5.9952 6.4177 0.1668 0.1558 10 2.3674 0.0658 11 2.5804 0.3875 17.5603 6.8052 0.0569 0.1469 12 2.8127 0.3555 20.1407 7.1607 0.0497 0.1397 11 2.5804 0.3875 6.8052 0.1469 17.5603 20.1407 0.0569 0.0497 12 2.8127 0.3555 7.1607 13 3.0658 7.4869 0.3262 0.2992 22.9534 26.0192 0.0436 0.0384 0.1397 0.1336 0.1284 0.1241 14 7.7862 3.3417 3.6425 15 0.2745 29.3609 8.0607 0.0341 3.9703 0.2519 33.0034 8.3126 0.0303 0.1203 0.2311 36.9737 8.5436 0.0270 4.3276 4.7171 18 0.2120 41.3013 8.7556 0.0242 0.1170 0.1142 0.1117 0.1095 19 0.1945 46.0185 8.9501 0.0217 0.0195 20 5.1417 5.6044 6.1088 0.1784 51.1601 9.1285 H2BH BEGB995884 21 0.1637 9.2922 0.0176 0.1076 0.1059 22 0.1502 56.7645 62.8733 69.5319 6.6586 7.2579 0.0159 23 0.1378 0.0144 0.1044 24 7.9111 0.1264 76.7898 9.4424 9.5802 9.7066 9.8226 10.2737 0.0130 0.1030 25 8.6231 0.1160 84.7009 0.0118 0.1018 30 0.0073 0.0973 13.2677 20.4140 0.0754 0.0490 35 136.3075 215.7108 337.8824 10.5668 0.0046 40 31.4094 0.0318 10.7574 0.0946 0.0930 0.0919 45 0.0207 525.8587 10.8812 0.0030 0.0019 0.0012 48.3273 74.3575 50 0.0134 815.0836 10.9617 0.0912 There are two customers requiring three-phase electrical service, one existing at location A and a new customer at location B. The load at location A is known to be 110 KVA, and at location Bit is contracted to be 280 kVA. Both loads are expected to remain constant indefinitely into the future. Already in service at A are three 100-KVA transformers that were installed some years ago when the load was much greater. Thus, the alternatives are as follows: Alternative A: Install three 100-kVA transformers (new) at B now and replace those at A with three 37.5-kVA transformers only when the existing ones must be retired. Alternative B: Remove the three 100-KVA transformers now at A and relocate them to B. Then install three 37.5-KVA transformers (new) at A. The existing transformers have 10 years of life remaining. Suppose that the before-tax MARR = 9% per year. Use the capitalized worth method to recommend which action to follow. Assume an infinite analysis period with repetitive cycles of replacement and ignore income taxes. Click the icon to view the table for data for both alternatives. Click the icon to view the interest and annuity table for discrete compounding when MARR = 9% per year. The CW value for the alternative A is $(Round to the nearest dollar.) The CW value for the alternative B is s (Round to the nearest dollar.) Alternative B is more economical. Existing and New Transformers Three 37.5 kVA Three 100-KVA Capital Investment Equipment Installation Property tax Removal cost $1,100 $360 2% of capital investment $120 $120 25 $2,300 $510 2% of capital investment $450 $450 25 Market value Useful life (years) Print Done Discrete Compounding; i = 9% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor Capital Recovery Factor To Find F Given P FIP To Find P Given F P/F To Find F Given A FIA To Find A Given F A/F To Find A Given P A/P N To Find P Given A P/A 0.9174 1.7591 2.5313 1 0.9174 1.0000 1.0900 1.0900 1.1881 2 0.8417 0.4785 0.5685 1.0000 2.0900 3.2781 4.5731 3 1.2950 0.7722 0.3051 0.3951 4 1.4116 3.2397 0.3087 0.2187 0.1671 5 0.7084 0.6499 0.5963 1.5386 5.9847 3.8897 0.2571 6 7.5233 4.4859 0.2229 1.6771 1.8280 0.1329 0.1087 7 0.5470 9.2004 5.0330 0.1987 8 1.9926 11.0285 5.5348 0.0907 0.1807 9 2.1719 0.5019 0.4604 0.4224 0.0768 13.0210 15.1929 5.9952 6.4177 0.1668 0.1558 10 2.3674 0.0658 11 2.5804 0.3875 17.5603 6.8052 0.0569 0.1469 12 2.8127 0.3555 20.1407 7.1607 0.0497 0.1397 11 2.5804 0.3875 6.8052 0.1469 17.5603 20.1407 0.0569 0.0497 12 2.8127 0.3555 7.1607 13 3.0658 7.4869 0.3262 0.2992 22.9534 26.0192 0.0436 0.0384 0.1397 0.1336 0.1284 0.1241 14 7.7862 3.3417 3.6425 15 0.2745 29.3609 8.0607 0.0341 3.9703 0.2519 33.0034 8.3126 0.0303 0.1203 0.2311 36.9737 8.5436 0.0270 4.3276 4.7171 18 0.2120 41.3013 8.7556 0.0242 0.1170 0.1142 0.1117 0.1095 19 0.1945 46.0185 8.9501 0.0217 0.0195 20 5.1417 5.6044 6.1088 0.1784 51.1601 9.1285 H2BH BEGB995884 21 0.1637 9.2922 0.0176 0.1076 0.1059 22 0.1502 56.7645 62.8733 69.5319 6.6586 7.2579 0.0159 23 0.1378 0.0144 0.1044 24 7.9111 0.1264 76.7898 9.4424 9.5802 9.7066 9.8226 10.2737 0.0130 0.1030 25 8.6231 0.1160 84.7009 0.0118 0.1018 30 0.0073 0.0973 13.2677 20.4140 0.0754 0.0490 35 136.3075 215.7108 337.8824 10.5668 0.0046 40 31.4094 0.0318 10.7574 0.0946 0.0930 0.0919 45 0.0207 525.8587 10.8812 0.0030 0.0019 0.0012 48.3273 74.3575 50 0.0134 815.0836 10.9617 0.0912