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Welcome to MunInsight, Canada's largest consulting firm dedicated to helping municipalities make strategic decisions using best practices in engineering economics and project management. For your

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Welcome to MunInsight, Canada's largest consulting firm dedicated to helping municipalities make strategic decisions using best practices in engineering economics and project management. For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $500,000 $800,000 Salvage $66,000 $80,000 Annual Savings $40,000 $70,000 $1000 occurs every other Maintenance $3000 every 3 years year, starting the first year and increases by $500 each time Service Life 20 16 8- The City of Saskatoon has applied a real MARR of 4% on similar past projects. Assuming the same rate can be applied here, calculate the minimum feasible salvage value for each of the options. Consider the inflation rate will remain the same as over the last five years, when CPI rose from 124.6 to 136.5. In the space below, show your calculations using factor notation (for example (P/A. I, n)). Welcome to MunInsight, Canada's largest consulting firm dedicated to helping municipalities make strategic decisions using best practices in engineering economics and project management. For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $500,000 $800,000 Salvage $66,000 $80,000 Annual Savings $40,000 $70,000 $1000 occurs every other Maintenance $3000 every 3 years year, starting the first year and increases by $500 each time Service Life 20 16 8- The City of Saskatoon has applied a real MARR of 4% on similar past projects. Assuming the same rate can be applied here, calculate the minimum feasible salvage value for each of the options. Consider the inflation rate will remain the same as over the last five years, when CPI rose from 124.6 to 136.5. In the space below, show your calculations using factor notation (for example (P/A. I, n))

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