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, compounded semiannually for the following scenarios: Land Application Incineration Contract First cost, $ -130,000 -900,000 0 Annual operating -175,000 -30,000 -150,000 cost, $ per year per semiannual per quarter Salvage value, $ 25,000 300,000 0 Life, years 3 6 2 (a) The estimates as shown and please select the bast alternative.

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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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, compounded semiannually for the
following scenarios:
Land Application
Incineration
Contract
First cost, $
-130,000
-900,000
0
Annual operating
-175,000
-30,000
-150,000
cost, $
per year
per semiannual
per quarter
Salvage value, $
25,000
300,000
0
Life, years
3
6
2
(a) The estimates as shown and please select the bast alternative.
Transcribed Image Text: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, compounded semiannually for the following scenarios: Land Application Incineration Contract First cost, $ -130,000 -900,000 0 Annual operating -175,000 -30,000 -150,000 cost, $ per year per semiannual per quarter Salvage value, $ 25,000 300,000 0 Life, years 3 6 2 (a) The estimates as shown and please select the bast alternative.
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