Q 5.

1
Interest Rate 7%
No of Years 5
A B
Years Installments Years Isntallments
0 0
1 300 1 400
2 300 2 350
3 300 3 300
4 300 4 250
5 300 5 200

PW 1230.1 Pw 1257.75

Q 5.2
Intrest Rate 6%
A B
Years cost($) Years Cost
Present 300 Present 400
25 350

Pw(million) 381.5 Pw(million) 400

Alternative A is suitable as it has samller present Worth.

 Q 5.3

Intrest Rate 7%

Speedy Allied
cost 1500 cost($) 1600
Years 5 Years 5
Salvage Value($) 200 Salvage Value($) 325

Pw 1357.40 Pw 1368.28

Q 5.4
Intrest Rate 8%

Atlas Scal Tom Thumb scale

cost 2000 cost 3000
Years 6 Years 6
Uniform Annual Benefit 450 Uniform Annual Benefit 600
Salvage Value 100 Salvage Value 700

Pw 143.31 214.85
 Q 6.1
Present Cost 1000
Interest Rate 7%
No of Years 10

Equivalent uniform annual cost 142.38

Q 6.2
Salvage Cost 200
Installments of salvage Cost 14.4755005454729

Equivalent uniform annual cost 127.902

Q 6.3
Intrest Rate 7%

Years Maintanance Cost Present Worth

1 45 42.05607476636
2 90 78.60948554459
3 180 146.9336178404
4 135 102.9908536264
5 225 160.4218903838

Total PW 531.01

EUAC 129.51
 Q 6.4
Intrest Rate 7%

Years Maintanance Cost Present Worth

1 45 42.05607476636
2 90 78.60948554459
3 135 110.2002133803
4 180 137.3211381686
5 225 160.4218903838

Total PW 528.61

EUAC 128.92

Q 6.5
No of Years 5
Intrest Rate 7%

Device A Device B
Saving Annually $300 Saving Annually 400
EUAB $300 EUAB 93.247519852
EUAB 306.75248015