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Date: 19 March 2019 No: Name: EGN 3212 Engineering Economy LO3- PW & AW Analysis ,000, and Annual 1. For a project following

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Answer #1

Solution 1: -

Present worth = 20000 + 1500*P/A(15%, 20yrs)  

1 Solution 2 Year 3 Cashflow PVF@15% PV of cashflow 20000 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 1500 15

Solution 2: -

To find the annual worth first find present value of cashflow.

1 Solution 2 Yeair PV of cashflow Cashflow 0 PVF@ 12% 5000 3000 3000 3000 3000 3000 0.893 0.797 0.712 0.636 0.567 5000.000 26

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