Assignment II (Group work with two/three students in each group)

i) Write a report on “Taxation and depreciation, and their impact on Engineering Economy Analysis”

ii) Solve the following problems.

Submission Deadline: 31St March 2024

(Please upload your solution in the blackboard)

1
 5%

120

M a ↑
25
26 272829303132

d d d d d ↓ d
33

4500$ 3004 -

F33 =??

- =
1200
(F/A , 5 %, 25)(1 + 5% )8 -

4500 (F/A ,
5 %,
5)(1 + 5:
.
) -
3000 (f/A 5:. , 2)(1 + 5% )
,

1200(47
=
.

727)(1 + 5% )8 -

4500/5 .

526)(1 + 5 % 3 3000 )
(2 050)(1 + 5%
-

=
49 , 373 .
258
 5000$
15 , 000

#
si
IF 5 %

↓ 40, 000
70 000
$
, $

PW = -40 , 000 + 5000 (P/A , 5 %, 5)

PN = -

70 , 000 + 1500 IP/A , 5: . , 5)

= -
40 , 000
+ 5000 /4-329)

= 70 000 15000/4 329)

-

+
18 355$
·

, =
-
,

I -

50654

deliver in Savings the invest

* since both projects cost more than
they ,
company should not

in either
 (Pla

1400 (P/A
-

4 10
-

Po =
, %, 4)
20 - 300 (P16 ,
20: , 4) + 500 (P/A , 201 "4/l +
20)
i
.
+ 2000 (1 + 201)
,

-
1400/2 589) 300 10
(3 299) 500/2 589))( + 2015 "
-
.
-
.

+ .

+ 2000 (1 + 20 % )

=
3582 .

1877
 20 , 000 $
12% $

↑
50 , 000

&44 04 <
500 , 00

I kryn
4 H

= 50 , 000 $/yr
200, 000

4
. 968 0 .

4039
& ↑
PN 50
= -

200 000 + , 000

(P1A 12
% 18) (P/
, , + 20 , 000 +, 12% ,
8)

I 56
, 478

PW then this worth invest

> 0
project is to in
 20
M$

↑
A =
??
↑ &
*
- ↑ a
-

↓
N =
15 yr
↓ 2 & d ↓
15 M$

50 M$)

let
equal the annual revenue that permits the
shopping center to break even in its operation :

O = -50 , 000 000

(A-15
, +
, 000 , 000) (P/A ,
20%, 15) + 20 , 000 , 0 0 0 (P17, 20%, 15)
0 = -
50 , 000
, 000 + 4 6755 A -70 132 , 500 + 1
, 298
.

,
, 000

118 , 834 , 500 =

4 .
6755 A

A =
25 , 416 , 426 Per Year

if the annual revenue exceeds A ,

than the project is worth while
 1 , 500, 000

,00
200
PW =
-520 , 000 + 200 , 000 (P/A , i l , 10) (PH i %,
- + 1500, 000 , 10)
520 , 000

using Excel : -