IE 3201 Chapter : Fund Eng Econ Ch5

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15 Mar 2019
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Annual cash inflow = 34, 000 30, 000 3, 500 , 500. 5. 2) project cash flows over the project life. : the cost of building is given as if cmax is being built from scratch. No credit is given for the capacity already in place. In that case, what we need to do is to identify the incremental cost of adding the additional capacity above the existing capacity. ,235,000 (b) discounted payback period = 1 year. n. 5. 4) (a) it will take 3 years to recover the total investment. ,500 (b) it will take 4 years to recover the total investment. n. 5. 5) (a) it will take 5 years to recover the total investment. n. ,000 (b) the total investment is recovered in year 6 (or 5. 19 years) Project a: 5 years, project b: 5 years, project c: 4 years.

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