Question: Answer with proper calculations Question 1 [25 marks] (a) Find the present worth of the following cash flow diagram in Figure Q1 if i =
Question 1 [25 marks] (a) Find the present worth of the following cash flow diagram in Figure Q1 if i = 8%. 100 150 200 3 250 4 5 6 Installed System Cost CleanH,O $30,000 AcidFree 35,000 Evergreen. 80,000 300 300 350 Figure Q1 Annual Operating Cost $6,000 5,000 1,000 Table Q1 250 200 150 10 (b) A semiconductor manufacturer has been ordered by the city to stop discharging acidic waste liquids into the city sewer system. Your analysis shows you should select one of the following three systems in Table Q1. If the system is expected to last and be used 20 years and money is worth 8%, which system should be purchased based on equivalent annual cost? 100 [10 marks] Salvage Value $2,000 5,000 40,000 [15 marks]
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