1. The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the People's Republic of China) has requested that $500,000 be spent now during construction on software and hardware to improve the efficiency of the environmental control systems. This is expected to generate revenue of $95,000 per year, and Maintenance and energy cost is assumed to be $85,000 annually. It also expected that there is a $100,000 salvage value at the end of 10 years. If MARR = 5%, a) What is the first year Rate of Return of this proposal? b) What is the excess, using annual worth method, of this proposal? c) Compute the Net Future Worth of this proposal? d) What is the simple payback period for this proposal? e) What is your conclusion on the about the acceptability of this proposal?
1. The HVAC engineer for a company constructing one of the world's tallest buildings (Shanghai Financial Center in the People's Republic of China) has requested that $500,000 be spent now during construction on software and hardware to improve the efficiency of the environmental
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