Question: For your first assignment, youve been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B
For your first assignment, youve been tasked with comparing the following two processes. The table summarizes the costs associated with each.
| Process A | Process B | |
| First Cost | $550,000 | $650,000 |
| Salvage | $70,000 | $80,000 |
| Annual Savings | $50,000 | $60,000 |
| Maintenance | $2000 every 2 years | $1000 occurs every other year, starting the first year and increases by $600 each time |
| Service Life | 18 | 15 |

1.Enter the payback period for Process A in years:
2.Enter the payback period for Process B in years:
3. Repeat the comparison of processes A and B using Equivalent Uniform Annual Cost (EUAC), assuming an interest rate of 3%. In the space below, show your calculations using factor notation.
4.The City of Saskatoon has applied a real MARR of 5% on similar past projects. Assuming the same rate can be applied here, calculate the minimum feasible salvage value for each of the options. Consider the inflation rate will remain the same as over the last five years, when CPI rose from 124.6 to 137.4. In the space below, show your calculations using factor notation.
5.Given the same real MARR of 5%, determine the maximum allowable inflation rate for Process A to still be feasible. In the space below, explain your solution process and show your calculations using factor notation.
I KNOW ITS A MOUTHFUL, CAN POST MULTIPLE QUESTIONS IF YOUD PREFER.
For your first assignment, you've been tasked with comparing the following two processes. The table summarizes the costs associated with each. Process A Process B First Cost $550,000 $650,000 Salvage $70,000 $80,000 Annual Savings $50,000 $60,000 Maintenance $2000 every 2 years $1000 occurs every other year, starting the first year and increases by $600 each time Service Life 18 15
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