Engineering Economics Evaluation of two projects: A and B Assuming that MARR=8 % and based...
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Accounting
Engineering Economics Evaluation of two projects: A and B Assuming that MARR=8 % and based on the given information in the summary table below, compare the Project A and B using: 9.1. Present Worth Net Benefit; and
9.2. Simple Payback Period.
Parameters
Project A
Project B
Initail Costs ($)
200,000
400,000
Annual Net Revenue ($/yr.)
50,000
70,000
Project Lifetime (Yrs.)
5
10
Salvage at Lifetime ($)
20,000
50,000
For both projects draw the cash flow diagrams and cash flow tables.
Answer & Explanation
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