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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A remotely located air sampling station can be powered by solar cells or by running an above ground electric line to the site and using conventional power. Solar cells will cost $16,600 to install and will have a useful life of 5 years with no salvage value. Annual costs for inspection, cleaning, etc., are expected to be $2400. A new power line will
cost $31,000 to install, with power costs expected to be $1000 per year. Since the air sampling project will end in 5 years, the salvage value of the line is considered to be zero. At an interest rate of 10% per year, ( a ) which alternative should be selected on the basis of an annual worth analysis and ( b ) what must be the first cost of the above ground line to make the two alternatives equally attractive economically?
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Q227:
The cash flows for two small raw water treatment systems are shown. Determine which should be selected on the basis of an annual worth analysis at 10% per year interest.
|
 |
MF |
UF |
|
First cost, $ |
–33,000 |
–51,000 |
|
Annual cost, $ per year |
–8,000 |
–3,500 |
|
Salvage value, $ |
4,000 |
11,000 |
|
Life, years |
3 |
6 |
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