5-39 need to be solved without the irr method

5-39. A large lithium-ion phosphate battery pack for an industrial application is expected to save $20,000 in annual energy expenses over its 6-year life. For a 3-year simple payback period, the permissible capital investment is $60,000 (do you understand how it is calculated). After purchase it became evident that the saving is 11000 per year. It has a residual (salvage) value of $10.000 at the end of 6 years. Based on PW and the new saving, is this $60,000 a profitable investment? The MARR is 18% per year. What is the discounted payback period using the 20000 annual saving? 6.29 Tun Mutall av clusive alternativas faroffice buildina rafrinaration and air conditionins ara haine 12-14. A hospital administrator is faced with the problem of having a limited amount of funds available for capital projects. He has narrowed his choice down to two pieces of x-ray equipment, since the radiology department is his greatest producer of revenue. The first piece of equipment (Project A) is a fairly standard piece of equipment that has gained wide acceptance and should provide a steady flow of income. The other piece of equipment (Project B), although more risky, may provide a higher deliberation with his radiologist and director of finance, the administrator has developed the following table: Cash Flow per Year (thousands) Probability Project A Probability Project B 0.6 $2,000 $4,000 0.3 1,800 1,200 1,000 900 0.1 03 Discovering that the budget director of the hospital is taking courses in engineering, the hospital administrator has asked him to analyze the two projects and make his recommendation. Prepare an analysis that will aid the budget director in making his recommendation. In this problem, do risk and reward travel in the same direction? (12.4)