Question: please solve with formulas like (F/P, 5% , n) not with the excell. E.2. Find which of the two alternative sewer designs has the lowest

please solve with formulas like (F/P, 5% , n) not with the excell.

please solve with formulas like (F/P, 5% , n) not with the

E.2. Find which of the two alternative sewer designs has the lowest present worth. The ex- pected life of each is 20 years, and i = 8 percent per year. All annual payments are end- of-year. Design A. Gravity flow, deep installation Cost new, $780,000 O & M, $1,000/yr Salvage value, none Design B. Lift station, shallow installation Cost new, $500.000 O&M, $12,000 for years 1 through 5, increasing by $1,200/yr/yr thereafter, ($13,200 at EOY 6, $14,400 at EOY 7, etc.) Salvage value, $100,000 at EOY 20 (a) Draw the cash flow diagram for design B only. (b) Find the present worth of each alternative. hatant

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!