$[$HW Problem $03]-$ Annual Cash Flow Analysis

A pump is needed for $10$ years at a remote location. The pump can be driven by an electric

motor if a power line is extended to the site. Otherwise, a gasoline engine will be used. Use

an annual cash flow analysis and a $6\%$ interest rate. How should the pump be powered?

$($a$)$ Draw Cash Flow Diagram for these cases.

Solve problem by using equations.

$($a$)$ Write finance factors for this example.

$(ex)A=P(\frac{P}{A},5\%,n)$

$($c$)$ Include screenshot of your Excel spreadsheets

for your results.

please draw diagram and answer questions

thank you!