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 below. Determine which alternative should be selected, using an MARR value of 10% per year. First cost, S Annual operating cost, $ per year Salvage value, $ Life, years A -130,000 -95,000 25,000 3 B -900,000 -60,000 300,000 6 C 0 -120,000 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 below. Determine which alternative should be selected, using an MARR value of 10% per year. First cost, S Annual operating cost, $ per year Salvage value, $ Life, years A -130,000 -95,000 25,000 3 B -900,000 -60,000 300,000 6 C 0 -120,000 0 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Kk.7.

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 below. Determine which alternative should be selected, using an MARR value of 10%
per year.
First cost, $
Annual operating cost, $ per year
Salvage value, $
Life, years
A
-130,000
-95,000
25,000
3
B
-900,000
-60,000
300,000
6
C
0
-120,000
0
2

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