5.15 An environmental engineer is considering three methods for disposing of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are below. (a) Determine which has the least cost on the basis of an annual worth comparison at 10% per year. (b) Determine the equivalent present worth value of each alternative using its AW value. Land Incineration Contract Application First cost, $ -150,000 -900,000 Annual operating cost, $ per year -95,000 -60,000 -170,000 Salvage value, $ 25,000 20,000 Life, years 2

5.15 An environmental engineer is considering three methods for disposing of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are below. (a) Determine which has the least cost on the basis of an annual worth comparison at 10% per year. (b) Determine the equivalent present worth value of each alternative using its AW value. Land Incineration Contract Application First cost, $ -150,000 -900,000 Annual operating cost, $ per year -95,000 -60,000 -170,000 Salvage value, $ 25,000 20,000 Life, years 2

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Question

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5.15

5.15 An environmental engineer is considering three methods for disposing of a
non-hazardous chemical sludge: land application, fluidized-bed incineration, and
private disposal contract. The estimates for each method are below. (a)
Determine which has the least cost on the basis of an annual worth comparison at
10% per year. (b) Determine the equivalent present worth value of each
alternative using its AW value.
Land
Incineration
Contract
Application
First cost, $
-150,000
-900,000
Annual operating cost, $ per year
-95,000
-60,000
-170,000
Salvage value, $
25,000
20,000
Life, years
4
6

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