TOPIC IS ENGINEERING ECONOMICS

A company is planning to install a new automated plastic-molding press. Four different processes are available. The initial capital investments and annual expenses for these four mutually exclusive alternatives are as follows.

	Press, P1	P2	P3	P4
Capital Investment	$24,000	$30,400	$49,000	$52,000
Useful life(years)	5	13	7	5
Power	2,720	2,720	4,800	5,040
Labor	26,400	24,000	16,800	14,800
Maintenance	1,600	1,800	2,600	2,000
Property taxes and insurance	480	608	992	1,040

Use rate of return method to select most suitable press. Assume MARR=10%

Use PW method to select a press. Does it certify the answer obtained in part (a)?