Determine if the selection of system GH or B3 is sensitive to variation in the return required by management. Depending on the type of project, the corporate MARR ranges from 8% to 16% per year on different projects.

(a) Write the AW equations to find the values by hand.

(b) Solve using a spreadsheet at 2% increments, develop the AW versus MARR graph, and find the breakeven MARR between GH and B3.

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Вз GH System First cost, $ -50,000 -100,000 AOC, $ per year -6,000 -1,500 Salvage value, $ Overhaul year 2, $ Overhaul year 6, $ Life, years 30,000 -17,000 -30,000 4 12