Feng Seawater Desalination Systems has established a capital investment limit of $800,000 for next year for projects

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Feng Seawater Desalination Systems has established a capital investment limit of $800,000 for next year for projects that target improved recovery of highly brackish groundwater. All projects have a 4-year life and the MARR is 10% per year.

(a) Select any or all of the projects.

(b) Project Z is a favorite of Mr. Feng. Determine the minimum NCF necessary to make Z the economically best project.

(c) Use a spreadsheet to answer the two parts above.

Net Cash Salvage Project Investment, $ Flow, $/Year Value, $ 45,000 Initlal -250,000 50,000 -10,000 100,000 -300,000 90,

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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Related Book For  book-img-for-question

Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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