CIVL 2812—Project Appraisal (Semester 2, 2019)
CIVL 2812—Project Appraisal (Semester 2, 2021)
Page 1
Tutorial 4 Questions
Objectives A
• To understand the assumptions underlying each method including NPV, NFV, Annual Worth, IRR, ERR
and payback period.
• Be able to apply the methods to a given project.
Objectives B
• To understand the basic concepts for comparing alternatives.
• Be able to apply methods learned so far to compare projects with same useful lives (equal to study
period).
ESSENTIAL QUESTIONS
CIVL 2812—Project Appraisal (Semester 2, 2021)
Page 2
ESSENTIAL QUESTIONS
Problem 6-4
Three mutually exclusive design alternatives are being considered. The estimated sales and cost data for each
machine are given below. The MARR is 20% per year. Annual revenues are based on the number of units sold
and selling price. Annual expenses are based on fixed and variable costs. Determine which selection is
preferable based on AW. State your assumptions. (6.4)
CIVL 2812—Project Appraisal (Semester 2, 2021)
Page 3
EXTENSION QUESTIONS
CIVL 2812—Project Appraisal (Semester 2, 2021)
Page 4
EXTENSION QUESTIONS
Problem 5-60
CIVL 2812—Project Appraisal (Semester 2, 2021)
Page 5
EXTENSION QUESTIONS