An HP preheater is needed by a power plant to process preheated feed water between the...

 

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An HP preheater is needed by a power plant to process preheated feed water between the boiler feed pump and the evaporator inlet. The net cash flows are estimated to be as follows: Year End 0 1 2 3 4 5 6 7 8 9 10 Market Value Net Cash Flow -Php1,344,000 300,000 280,000 265,000 200,000 g=7.5% 560,000 Determine whether this is a good investment if the MARR is 15% per year. Use the following methods: 1. Present Worth Method 2. IRR Method An HP preheater is needed by a power plant to process preheated feed water between the boiler feed pump and the evaporator inlet. The net cash flows are estimated to be as follows: Year End 0 1 2 3 4 5 6 7 8 9 10 Market Value Net Cash Flow -Php1,344,000 300,000 280,000 265,000 200,000 g=7.5% 560,000 Determine whether this is a good investment if the MARR is 15% per year. Use the following methods: 1. Present Worth Method 2. IRR Method

Answer rating: 100% (QA)

Ans1 The Present Worth of the Investment with 15 MARR is tabulated hereunder Year Net Cash Flow Salv... View the full answer