Question: Third question must be solved 3- We solved the Drive Tek Problem in our lecture. Please solve this problem by explaining each branch of the

Third question must be solved

3- We solved the Drive Tek Problem in our lecture. Please solve this problem by explaining each branch of the decision tree. Please do NOT draw a decision tree. Please explain the solution in writing. (20 points) 1- Three mutually exclusive design alternatives are beimg considered. The estimated cah flows for each alternative are given below. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold. A decision- maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. Which alternative would you select? (40 points) A B Investment cost 28000 USD/55000 USD/40000 USD Annual expenses 15000 USD/13000 USD|22000 USD Annual revenues 23000 USD|28000 USD32000 USD Market value at the end of useful life 6000 USD 8000 USD 10000 USD Useful life 10 years 10 years 10 years 2- The Doinion Freight Compny has invested 50000 USD in a new sorting machine that is expected to produce a return of 7500 USD per year for the next 10 years. At a 7 % annual interest rate, is this investment worthwhile? (20 points) 3- We solved the Drive Tek Problem in our lecture. Please solve this problem by explaining each branch of the decision tree. Please do NOT draw a decision tree. Please explain the solution in writing. (20 points) 3- We solved the Drive Tek Problem in our lecture. Please solve this problem by explaining each branch of the decision tree. Please do NOT draw a decision tree. Please explain the solution in writing. (20 points) 1- Three mutually exclusive design alternatives are beimg considered. The estimated cah flows for each alternative are given below. The MARR is 20% per year. At the conclusion of the useful life, the investment will be sold. A decision- maker can select one of these alternatives or decide to select none of them. Make a recommendation using the PW method. Which alternative would you select? (40 points) A B Investment cost 28000 USD/55000 USD/40000 USD Annual expenses 15000 USD/13000 USD|22000 USD Annual revenues 23000 USD|28000 USD32000 USD Market value at the end of useful life 6000 USD 8000 USD 10000 USD Useful life 10 years 10 years 10 years 2- The Doinion Freight Compny has invested 50000 USD in a new sorting machine that is expected to produce a return of 7500 USD per year for the next 10 years. At a 7 % annual interest rate, is this investment worthwhile? (20 points) 3- We solved the Drive Tek Problem in our lecture. Please solve this problem by explaining each branch of the decision tree. Please do NOT draw a decision tree. Please explain the solution in writing. (20 points)

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