Engineering economics

Problem 1: (30 points) Four mutually exclusive design alternatives are being considered. The estimated cash flows for each alternative are given. The MARR is 20% per year. At the end of the useful life, the investment will be sold Determine which alternative is the most attractive using the equivalent worth method. Investment cost Annual expenses Annual revenues Market value Useful life $28,000 $55,000 $40,000 $62,000 $15,000 | s13,000 | s22,000 $14,000 23,000 28,000 32,000 35,000 $6,000 $8,000 $10,000 $14,000 10 years 10 years 10 years 10 years