Question 4 [Total 15 marks] Environmentally friendly companies are looking for ways to be less damaging to the environment while saving money with innovative investments in capital equipment. ABC Chemical Company is sponsoring a project to recover much of the energy currently being lost in the primary stage of one of their chemical reactor vessels. Three mutually exclusive designs are being considered for implementation. The estimated capital requirements and annual savings in operating expenses are given below. Assume a MARR = 10% per year, and the study period is 6 years. EOY Design 1 Design 2 Design 3 0 ($1,100,000 ($1,150,000 ($700,000 +D8x10,000) +D8*8,000) +D8x3,000) 1-6 $ 258,000 at EOY 1, $ 290,000 at EOY 1, $ 197,500 per year growing at 6% per year growing by $2,500 per year starting at EOY 1 Salvage value $ (D8 + 1)*10,000 $ (D8 + 1)*8,000 $ (D8 + 1)x3,000 @EOY 6 (a) Find the PW of Design 1. Round off your final answer to nearest thousand. (b) Find the PW of Design 2. Round off your final answer to nearest thousand. (c) Find the PW of Design 3. Round off your final answer to nearest thousand. (d) Which design should be selected? Why