Problem 1 Waller County is planning to construct a Dam some tens of miles away from the Hempstead Recreation center to facilitate fishing in the El Manny River Basin and Power Generation. The first cost for the Dam will amount to $6,500,000. Annual maintenance and repairs will amount to $24,000 for the first four years, to $28,000 for each year in the next eight years, and to $32,000 per year for the next four years. At the end of the 16 year, $25,000 is estimated to be deposited into Waller county account as tax credits earned for its environmental compliance in the construction and operation of the Dam. In addition a major overhaul costing $650,000 will be required at the end of the seventh year. Use an interest rate of 10% and a) Determine the engineering economy symbols and their value for each option. b) Construct the cash flow diagram c) Calculate the Capital Recovery for the project d) Determine the total Annual Worth for the Project e) What is the Present worth of this project Problem 2 Magwood, the project manager for Medtronics Incorporation in Boston Massachusetts has 4 independent projects he can fund this year to improve medical device Ergonomics for the disable and senior citizens. The project initial investment and net annual revenue are given below. The MARR for this project is 12% per year. Projects Initial Investment Project life Net Annual Revenue, S J -400,000 5 120,000 K -250,000 105,000 L -200,000 88.800 M -150,000 67,000 a) Determine the total number of bundles and list them b) Calculate the present worth of each project c) What projects are acceptable if the budget limit is (i) no limit, (ii) $600,000 d) What projects are acceptable if J & K cannot both be chosen for a budget limit of $500,000