A chemical processing corporation is considering two methods to dispose of a non-hazardous chemical sludge: land application and fluidized-bed incineration. The estimates for each method are shown below. Use the Annual Worth (AW) method at interest 10% per year to select the better alternative Land Application Incineration First cost, $ - 130,000 - 900,000 Annual operating cost, $ - 95,000 - 60,000 Salvage value, $ 25,000 300,000 Life, years 10% TABLE 15 DIiscrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Serles Payments Arithmetic Gradients Compound Gradient Uniform Series Present Sinking Fund Compound Amount Capital Recovery A/P Present Worth P/A Gradient Present Worth Amount Worth F/P P/F A/F F/A P/G A/G 1.00000 0.47619 0.30211 1.0000 0.9091 1.7355 1.1000 0.9091 1.10000 0.8264 2.1000 3.3100 0.4762 0.9366 0.57619 0.8264 0.7513 0.6830 0.6209 0.5645 12100 1.3310 2.4869 2.3291 0.40211 0.31547 3. 4.3781 6.8618 4. 1.4641 021547 4.6410 3.1699 1.3812 1.8101 0.26380 0.22961 0.20541 3.7908 6.1051 7.7156 5. 1.6105 0.16380 4.3553 9.6842 2.2236 6. 1.7716 0.12961 4.8684 5.3349 5.7590 6.1446 9.4872 12.7631 2.6216 0.10541 0.08744 0.07364 7. 1.9487 0.5132 16.0287 19.4215 22.8913 3.0045 3.3724 2.1436 0.4665 11.4359 0.18744 0.17364 13.5795 15.9374 2.3579 0.4241 3.7255 2.5937 0.3855 0.06275 0.16275 10 Viéw. Insert Format Tools Table Edit
A chemical processing corporation is considering two methods to dispose of a non-hazardous chemical sludge: land application and fluidized-bed incineration. The estimates for each method are shown below. Use the Annual Worth (AW) method at interest 10% per year to select the better alternative Land Application Incineration First cost, $ - 130,000 - 900,000 Annual operating cost, $ - 95,000 - 60,000 Salvage value, $ 25,000 300,000 Life, years 10% TABLE 15 DIiscrete Cash Flow: Compound Interest Factors 10% Single Payments Uniform Serles Payments Arithmetic Gradients Compound Gradient Uniform Series Present Sinking Fund Compound Amount Capital Recovery A/P Present Worth P/A Gradient Present Worth Amount Worth F/P P/F A/F F/A P/G A/G 1.00000 0.47619 0.30211 1.0000 0.9091 1.7355 1.1000 0.9091 1.10000 0.8264 2.1000 3.3100 0.4762 0.9366 0.57619 0.8264 0.7513 0.6830 0.6209 0.5645 12100 1.3310 2.4869 2.3291 0.40211 0.31547 3. 4.3781 6.8618 4. 1.4641 021547 4.6410 3.1699 1.3812 1.8101 0.26380 0.22961 0.20541 3.7908 6.1051 7.7156 5. 1.6105 0.16380 4.3553 9.6842 2.2236 6. 1.7716 0.12961 4.8684 5.3349 5.7590 6.1446 9.4872 12.7631 2.6216 0.10541 0.08744 0.07364 7. 1.9487 0.5132 16.0287 19.4215 22.8913 3.0045 3.3724 2.1436 0.4665 11.4359 0.18744 0.17364 13.5795 15.9374 2.3579 0.4241 3.7255 2.5937 0.3855 0.06275 0.16275 10 Viéw. Insert Format Tools Table Edit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A chemical processing corporation is considering two methods to dispose of a non-hazardous
chemical sludge: land application and fluidized-bed incineration. The estimates for each method
are shown below. Use the Annual Worth (AW) method at interest 10% per year to select the
better alternative
Land Application
Incineration
First cost, $
- 130,000
- 900,000
Annual operating
cost, $
- 95,000
- 60,000
Salvage value, $
25,000
300,000
Life, years
3
10%
TABLE 15 Discrete Cash Flow: Compound Interest Factors
10%
Single Payments
Uniform Serles Payments
Arithmetic Gradients
Compound
Amount
Present
Sinking
Fund
Compound
Amount
Capital
Recovery
A/P
Gradient
Present Worth
P/G
Gradient
Uniform Series
A/G
Present
Worth
Worth
F/P
P/F
A/F
F/A
P/A
1.00000
1.0000
2.1000
1.10000
0.57619
0.40211
1.1000
0.9091
0.9091
0.8264
0.7513
2
1.2100
0.47619
1.7355
0.8264
0.4762
2.4869
2.3291
4.3781
6.8618
9.6842
1.3310
0.30211
3.3100
0.9366
1.3812
0.31547
0.26380
0.22961
0.20541
0.21547
4.6410
3.1699
0.6830
0.6209
4
1.4641
6.1051
3.7908
1.8101
1.6105
1.7716
0.16380
0.12961
2.2236
2.6216
0.5645
7.7156
4.3553
1.9487
0.5132
0.10541
9.4872
4.8684
12.7631
7
5.3349
16.0287
3.0045
0.08744
0.07364
11.4359
13.5795
0.18744
0.17364
8.
2.1436
0.4665
3.3724
5.7590
6.1446
19.4215
0.4241
0.3855
2.3579
0.06275
15.9374
0.16275
22.8913
3.7255
10
2.5937
Edit Viéw. Insert Format Tools Table
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