Cardenas and Moreno Engineering is evaluatinga large flood

Chapter 17, Problem 17.65

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Cardenas and Moreno Engineering is evaluatinga large flood control program for several southerncities. One component is a 4-year project for aspecial-purpose transport ship-crane for use inbuilding permanent storm surge protectionagainst hurricanes on the New Orleans, Louisianacoastline. The estimates are P = $300,000, S = 0,and n = 3 years. MACRS depreciation with a3-year recovery is indicated. GI and OE areestimated at $200,000 and $80,000, respectively,for each of 4 years, Te = 35%, and the after-taxMARR is 5% per year. The CFAT has beencalculated. Determine the AW values of theCFAT and EVA series. They should have thesame value. Year GI, $ OE, $ P, $ Depr., $ TI, $ Taxes, $ CFAT, $0 300,000 300,0001 200,000 80,000 99,990 20,010 7,003 112,9972 200,000 80,000 133,350 13,350 4,673 124,6733 200,000 80,000 44,430 75,570 26,450 93,5514 200,000 80,000 22,230 97,770 34,220 85,781

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