Question 2. A) Select the themes of design using Return on Investment ROI (Rate of...
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Question 2. A) Select the themes of design 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 initial cost of 5% on the rate of return for equipment A (calculate the % of change in ROI). [25marks] Theme ! Theme 11 Initial cost (OR) K L Annual revenues (OR/yr) M M O&M annual cost ((OR/yr) 5400 2700 Salvage value (OR) 2700 5400 Useful life (Years) 7 9 K IM 57000 63000 18600
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