Question: 2. An environmental engineer must recommend one of two methods for monitoring high colony counts of E. coli and other bacteria in watershed area hot
2. An environmental engineer must recommend one of two methods for monitoring high colony counts of E. coli and other bacteria in watershed area "hot spots." Estimates are tabulated, and the MARR is 10% per year. Use ROR analysis to select the better method. Fill in the incremental cash flow table below. State the PW-based ROR equation [6.2] in standard factor notation for the incremental cash flows. Use spreadsheet function IRR to find the exact incremental ROR, Ai*, to three significant digits Method A Method B 100,000 Initial cost, S 250,000 Annual operating cost S per year 30,000 in year 1 increasing by 5000 each year 20,000 Life, years 3 Year Cash Flows $ Alternative A (fill in Method A or B) Cash Flows $ Alternative B Incremental Cash _(fill in Method A or Flow S (B-A) B) 0 1 2 3 4 5 6 2. An environmental engineer must recommend one of two methods for monitoring high colony counts of E. coli and other bacteria in watershed area "hot spots." Estimates are tabulated, and the MARR is 10% per year. Use ROR analysis to select the better method. Fill in the incremental cash flow table below. State the PW-based ROR equation [6.2] in standard factor notation for the incremental cash flows. Use spreadsheet function IRR to find the exact incremental ROR, Ai*, to three significant digits Method A Method B 100,000 Initial cost, S 250,000 Annual operating cost S per year 30,000 in year 1 increasing by 5000 each year 20,000 Life, years 3 Year Cash Flows $ Alternative A (fill in Method A or B) Cash Flows $ Alternative B Incremental Cash _(fill in Method A or Flow S (B-A) B) 0 1 2 3 4 5 6
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