Explain how value engineering could help in this process.

Problem $2$

Capital investment analysis including environmental factors: manufacturer

Olympic Chemicals Ltd wants to purchase cooling systems for its new material$-$handling equipment in the warehouse. The warehouse is located near a residential district so management wants to ensure that there is minimal disruption to local residents. There are three different systems currently on the market.

$\backslash$table$[[,$System $1,$System $2,$System $3],[$Water$-$cooled,Air$-$cooled,Refrigerant$],[$Initial outlay,$$550000,$$$930000,$$$1370300],[$Cost of coolant p$.$a$.,$$$230000,0,$$ $8000],[$Maintenance costs p$.$a$.,$$ $90000,$$ $70000,$$ $35000],[$Energy costs p$.$a$.,$$ $95000,$$ $75000,$$ $52000],[$Waste p$.$a$.,230000$ kilolitres of water,$-,\backslash$table$[[50$ litres of refrigerant$],[$$$80000$ every $5$ years$]]],[$Major refurbishment,$$70000$ every $5$ years,$\backslash$table$[[$$$40000$ every $10$ years$],[75$ db$]],55$ db$],[$Sound tiers,$95db**,,],[,,,],[*db=$ decibels,,,$]]$

Prepare a cost analysis over the next $20$ years for the three systems, taking into account all of the above

Required: costs. $($If you have studied Chapter $21,$ calculate the net present value $($NPV$)$ using a $10$ per cent discount

$2.$ Prepare a recommendation to the board as to which system it should adopt. rate.$)$

Problem $3$

Miceinn data hacie CVP relationships

Answer please