Demonstrate the assessment of Present Worth (PW) with i=10% for the given options. Show all conversions made without any shortcut. Approach, assess and solve the issue as an engineer. The cash flow diagram is not warranted. Provide commentary on the assessment made. For the assessment. Show all conversions without any shortcut and all economic merits are counted. Economic Merits asset
A B
Initial investment in future Ia lb
Annual income in future Fa Fb
Annual maintenance Ha Hb
Modification on 2nd year in annual equivalent Ga Gb
Repair on 3rd and 8th year in present equivalent Ka Kb
Upgrade on 5th and 7th year in annual equivalent La Lb
Salvage future Sa Sb
lifecyle A 2A