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| Teaching Since: | May 2017 |
| Last Sign in: | 399 Weeks Ago |
| Questions Answered: | 66690 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
A chemical processing corporation is considering three methods to dispose of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are shown. Determine which has the least cost on the basis of a present worth comparison at 10% per year for the following scenarios:
(a) The estimates as shown
(b) The contract award cost increases by 20%
every 2-year renewal
|
 |
Land Application |
Incineration |
Contract |
|
First cost, $ |
130,000 |
900,000 |
0 |
|
Annual operating |
95,000 |
60,000 |
120,000 |
|
cost, $ per year |
 |
 |
 |
|
Salvage value, $ |
25,000 |
300,000 |
0 |
|
Life, years |
3 |
6 |
2 |
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