2) A piece of new equipment has been proposed by engineers to increase the productivity...

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2) A piece of new equipment has been proposed by engineers to increase the productivity of a certain welding operation. The investment cost is BD10,000, and the equipment will have a market value of BD2000 at the end of the study period of five years. Increased productivity attributable to the equipment will amount to BD6,000 per year after extra operation costs have been subtracted from the revenue generated by the additional production. If the firm MARR is 10% per year, is this proposal a sound one using a) Present worth b) Using benefit cost ratio method

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