6 You have been asked to evaluate a pollution device. The device costs $500 to set up and $100 per year to operate. It must be completely replaced every 4 years, and it has no salvage value. Assume the pollution control equipment is replaced as it wears out and the cost of capital is 12%. What is the EAC of the wet scrub device? A) $257.74 B) $264.62 C) $286.04 (D) $296.93 $331.21

6 You have been asked to evaluate a pollution device. The device costs $500 to set up and $100 per year to operate. It must be completely replaced every 4 years, and it has no salvage value. Assume the pollution control equipment is replaced as it wears out and the cost of capital is 12%. What is the EAC of the wet scrub device? A) $257.74 B) $264.62 C) $286.04 (D) $296.93 $331.21

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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