QUESTION 2: i) Use (a) no-return payback, (b) discounted payback at 12%, and (c) PW analysis at 12% to select a system. Comment on the results. (10) System 2 System 1 12,000 3,000 8,000 1,000 (year 1-4) 3,000 (year 5-14) 14 First cost, $ NCF, S per year Maximum life, years Solution: i) What is guideline/Criterion for economic justification of single project using B/C analysis? Is following roject justified? (10) P=$5 AOC $300 K per year $1,2000 K per year B D $200 K per year 1-7% n 10 years