A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown Compare them on the basis of their annual worths using an interest rate of 10% per year System First cost, $ -300,000 -180,000 -20.000 AOC Syear -78.000 Overhaul in year 2.5 -26.000 Salvage value $ 40,000 0.000 Life years H The annual worth of the centrifuge system is $- and the annual worth of the belt press system is $- The system selected on the basis of the annual worth analysis is the caca to sect) system

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.