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: Land Application First cost, $ Annual operating Cost, $ per year Salvage value, $ Life, years -130,000 -95,000 25,000 3 Incineration -900,000 -60,000 300,000 6 When comparing these alternatives based on PW analysis, The equation of PWContract is: Selected Alternative on the basis of PW-analysis Contract 0 -120,000 Choose... Choose... Choose... 0 2
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: Land Application First cost, $ Annual operating Cost, $ per year Salvage value, $ Life, years -130,000 -95,000 25,000 3 Incineration -900,000 -60,000 300,000 6 When comparing these alternatives based on PW analysis, The equation of PWContract is: Selected Alternative on the basis of PW-analysis Contract 0 -120,000 Choose... Choose... Choose... 0 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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V2
![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:
Land Application
First cost, $
Annual operating Cost,
$ per year
Salvage value, $
Life, years
-130,000
-95,000
25,000
3
Incineration
-900,000
-60,000
300,000
6
When comparing these alternatives based on PW analysis,
The equation of PWContract is:
Selected Alternative on the basis of PW-analysis
Contract
0
-120,000
Choose...
Choose...
Choose...
0
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac6de205-9e80-4044-b51e-89e30bc6bb54%2F703bb2c1-51de-459d-8ad4-d8b7d7014b4d%2F86xyavg_processed.jpeg&w=3840&q=75)
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:
Land Application
First cost, $
Annual operating Cost,
$ per year
Salvage value, $
Life, years
-130,000
-95,000
25,000
3
Incineration
-900,000
-60,000
300,000
6
When comparing these alternatives based on PW analysis,
The equation of PWContract is:
Selected Alternative on the basis of PW-analysis
Contract
0
-120,000
Choose...
Choose...
Choose...
0
2
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