Question: question 2 QUESTION 2 [20 MARKS] THREE (3) alternative engineering projects are considering for construction. The initial outlay, annual revenue and residual value of the

are considering for construction. The initial outlay, annual revenue and residual value

question 2

of the projects are given in Table 4. Each of the project

has an expected service life of 10 years. The bank interest rate

QUESTION 2 [20 MARKS] THREE (3) alternative engineering projects are considering for construction. The initial outlay, annual revenue and residual value of the projects are given in Table 4. Each of the project has an expected service life of 10 years. The bank interest rate is set at 11%, compounded annually. (a) Evaluate the THREE (3) projects based on Future Worth (FW) Method. [18 Marks] [C02, P02, C3] (b) Select the best project using the future worth values. [2 Marks] [C02, P02, C3]

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