Question: 1. A) Select the themes of design using Return on Investment ROI (Rate of Return) method , the data of both equipment are shown the

  1. 1. A) Select the themes of design using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below,

B) Compare the effect of decrease in initial cost of 5% on the rate of return for equipment A (calculate the % of change in ROI).

Theme I

Theme II

Initial cost (OR)

75000

81000

Annual revenues (OR/yr)

24000

24000

O&M annual cost ((OR/yr)

5400

2700

Salvage value (OR)

2700

5400

Useful life (Years)

7

9

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