Evaluate the three design alternatives using the assessment tools discussed in the class and determine which alternative is preferred to be implemented. MARR = 20%.

Instructions: 1. For each of the following case problems, conduct the engineering economic analysis and evaluation to complete the project assessment required. 2. In separate files, prepare a summary report that includes the summary table, decision/recommendation and sufficient justification. 3. Submit the summary report files in the Blackboart together with the handwritten solutions/calculations as attachments. Problem 1: An investment in some rental property in Jubail is worth $12,000 with 10% residual value at the end of 10 years. Based on the data gathered relating to this investment (refer to the table below), the rental revenue will increase each year, but so will the maintenance expenses. If your MARR=12% per year and expect to recover the initial cost in not more than 3 years with an annual profit of not less than $900, do you accept or reject this investment opportunity? Justify your decision. Year Revenue 0 1 2 3 4 5 6 7 8 9 10 6,000 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900 8,200 Expenses 12,000 3,100 3,300 3,500 3,700 3,900 6,100 4,300 4,500 4,700 4,900 Instructions: 1. For each of the following case problems, conduct the engineering economic analysis and evaluation to complete the project assessment required. 2. In separate files, prepare a summary report that includes the summary table, decision/recommendation and sufficient justification. 3. Submit the summary report files in the Blackboart together with the handwritten solutions/calculations as attachments. Problem 1: An investment in some rental property in Jubail is worth $12,000 with 10% residual value at the end of 10 years. Based on the data gathered relating to this investment (refer to the table below), the rental revenue will increase each year, but so will the maintenance expenses. If your MARR=12% per year and expect to recover the initial cost in not more than 3 years with an annual profit of not less than $900, do you accept or reject this investment opportunity? Justify your decision. Year Revenue 0 1 2 3 4 5 6 7 8 9 10 6,000 6,200 6,300 6,400 6,500 6,600 6,700 6,800 6,900 8,200 Expenses 12,000 3,100 3,300 3,500 3,700 3,900 6,100 4,300 4,500 4,700 4,900