4. 13.54 (Spreadsheet exercise) Cardenas and Moreno Engineering is evaluating a large flood control program for several southern 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 East Coast. The estimates are P = $300,000, S = 0, n = 3 years. MACRS depreciation with a 3-year recovery is indicated. GI and E are estimated at $200,000 and $80,000, respectively, for each of 4 years, Te = 23%, and the after-tax MARR is 10% per year. The CFAT has been calculated.

(a) Determine the AW values of both the CFAT and the EVA series by spreadsheet, unless instructed otherwise. They should have the same value.

(b) Monetarily, after how many years does the ship crane begin to contribute positive value to the company? Table Summary: Table divided into eight columns shows data to evaluate a proposal based on the inflation rate change. The column headers are marked from left to right as: year; GI, in dollars, E, in dollars; P, in dollars; D, in dollars; TI, in dollars; taxes, in dollars; and CFAT, in dollars. Year GI, $ E, $ P, $ D, $ TI, $ Taxes, $ CFAT, $ 0 −300,000 −300,000 1 200,000 −80,000 99,990 20,010 4,602 115,398 2 200,000 −80,000 133,350 −13,350 −3,071 123,071 3 200,000 −80,000 44,430 75,570 17,381 102,619 4 200,000 −80,000 22,230 97,770 22,487 97,513