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Use AW analysis for the following two parts Year Cash flow $ 0 -50,000.00 1 22.000.00 2 38,000.00 3 - 2000.00 4 -1000.00 5 5000.00
Use AW analysis for the following two parts Year Cash flow $ 0 -50,000.00 1 22.000.00 2 38,000.00 3 - 2000.00 4 -1000.00 5 5000.00 Table 2: Cash flow for problem 2a (a) A local energy management firm wishes to invest in a blockchain technology for efficient accounting of photovoltaic customer participation. The blockchain man agement software costs $15,000. The semiannual update and license renewal is $250. The salvage value of this technology by reselling it to a potential end user after three (3) years is $1250. If the energy management firm wants to recover its total cost in three (3) years, what is the semiannual amount that must be realized at an interest rate of 4.5%? (2.5 points) (b) An engineering firm is considering three methods for handling a hazardous ef- fluent: weak acid cation exchange (WACE), reverse osmosis process (RO); or contracting to a private agency for disposal. The estimates for each method are given below in table 3. Find the option with the least cost on the basis of annual worth comparison at 12.5% per year. (2.5 points) WACE RO Contract First cost (8) -750000 -900000 0 Annual cost ($) -55000-95000 250000 Salvage value (S) 65000 100000 Life (years) 4 6 2 Table 3: Estimates for options in Question 3b Use AW analysis for the following two parts Year Cash flow $ 0 -50,000.00 1 22.000.00 2 38,000.00 3 - 2000.00 4 -1000.00 5 5000.00 Table 2: Cash flow for problem 2a (a) A local energy management firm wishes to invest in a blockchain technology for efficient accounting of photovoltaic customer participation. The blockchain man agement software costs $15,000. The semiannual update and license renewal is $250. The salvage value of this technology by reselling it to a potential end user after three (3) years is $1250. If the energy management firm wants to recover its total cost in three (3) years, what is the semiannual amount that must be realized at an interest rate of 4.5%? (2.5 points) (b) An engineering firm is considering three methods for handling a hazardous ef- fluent: weak acid cation exchange (WACE), reverse osmosis process (RO); or contracting to a private agency for disposal. The estimates for each method are given below in table 3. Find the option with the least cost on the basis of annual worth comparison at 12.5% per year. (2.5 points) WACE RO Contract First cost (8) -750000 -900000 0 Annual cost ($) -55000-95000 250000 Salvage value (S) 65000 100000 Life (years) 4 6 2 Table 3: Estimates for options in Question 3b
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