engineering economy

plz do question 1 and 3

1.)

3.)

Note: 1. Show your calculations clearly. 2. Draw the cash flow diagrams wherever necessary. 3. Attach Excel printouts wherever appropriate and necessary. 4. Comment on the results when it is appropriate. 1. For the cash flow series below, calculate external rate of return, using the return on investment capital approach with the investment rate of 14% per year. Year 0 1 2 3 4 Cash Flow, S 3,000 -2,000 1,000 -6,000 3,800 3. The US bureau of Reclamation is considering a project to extend irrigation canals into the desert area. The initial cost of the project is expected to be $2 million with annual maintenance cost of $30,000 per year. a) If agricultural revenue is expected to be $200,000 per year, do a B/C analysis to determine whether the project is should be undertaken, using a 15-year study period and a discount rate of 8%. b) Rework the problem using the modified B/C ratio