Question: Engineering econmey 1. Table below shows the economic values for two projects: Costs First Cost, SR Salvage Value, SR Annual O & M Costs, SR

Engineering econmey

1. Table below shows the economic values for two projects: Costs First Cost, SR Salvage Value, SR Annual O & M Costs, SR Life, year Project 1 46,000 4,000 3,700 7 Project 2 34,000 0 3,200 5 Compare the two projects above in the bases of: a. Present Worth (PW) value using LCM method (3 points) b. Annual Worth (AW) value (hint: when estimating AW use n= 7 for project 1 and n=5 for project 2, time change here is not important when we calculate AW) (1 points) c. Capitalized Cost (CC) value (1 points) Assume the interest rate i= 10%

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