PUB is installing a new pump for a critical drainage system to prevent flash flooding during heavy
Question:
PUB is installing a new pump for a critical drainage system to prevent flash flooding during heavy storms. Relevant data for three alternative systems being considered are given below:
MARR for this project is 5%.
(a) If the study period is 10 years, determine which alternative should be chosen using any Discounted Cash Flow methods. State the main assumptions made.
(b) If the study period is 10 years, determine which alternative should be chosen using the IRR method. You may use any equation solver to compute IRRs after stating the relevant equations that need to be solved.
(c) If the study period is 15 years, determine which alternative should be chosen using any discounted cash flow methods. State the main assumptions made.
(d) If the study period is infinity, determine which alternative should be chosen. State the main assumptions made.
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam