Cardenas and Moreno Engineering is evaluating a very large flood control program for several southern U.S. cities.

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Cardenas and Moreno Engineering is evaluating a very large flood control program for several southern U.S. cities. One component is a 4-year project for a special-purpose transport ship-crane for use in building permanent storm surge protection against hurricanes on the New Orleans coastline. The estimates are P = $300,000, S = 0, and n = 3 years. MACRS depreciation with a 3-year recovery is indicated. Gross income and operating expenses are estimated at $200,000 and $80,000, respectively, for each of 4 years. The CFAT is shown below. Calculate the AW values of the CFAT and EVA series. They should have the same value. The after-tax MARR is 9.75% and Te =35%.

Cardenas and Moreno Engineering is evaluating a very large flood
MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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