A) Select the best method of construction using Return on Investment ROI (Rate of Return) method, the data of both equipment are shown the table below,
B) Compare the effect of decrease in revenues of 10% on the rate of return for method II (calculate the % of change in ROI). [25marks]
Method I
Method II
Initial cost (OR)
C1
C2
Annual revenues (OR/yr)
R
R
O&M annual cost ((OR/yr)
15200
16500
Salvage value (OR)
2000
1500
Useful life (Years)
8
10
ID
C1
C2
R
1710382
22600
17800
21900
Choose the best curbstone as shown in the table below using Net Present Value (MARR: 6%). [26 marks]
Precast curb stone
Cast in-situe curber
Initial cost (OR)
P
Initial cost (OR)
C
Annual maintenance
500
Annual maintenance The annual maintenance increasing annually 20 OR/yr
200
Useful life (years)
10
Useful life (years)
20
ID
P
C
1710382
7050
7800
Compare the use one of the electronic circuits, as shown in the table below, which electronic circuit is the best using Internal Rate of Return [25marks]
