An oil refinery finds that it is necessary to treat the waste liquids from anew process before discharging them into a stream. In-house treatmentwill have an annual cost of $50,000 the first year, but processimprovements will allow the annual cost to decline by $5,000 eachsubsequent year. As an alternative, an outside company will processthe wastes for an initial cost of $24,500 and an annual fixed price of$22,500/year throughout the 10 year period. Either way, there is noneed to treat the wastes after 10 years. Using the AW method,calculate the equivalent uniform annual cost (EUAC) of each alternativeand determine how the waste should be processed. The company'sMARR is 12%.Click the icon to view the interest and annuity table for discretecompounding when the MARR is 12per year.The EUAC for in-house treatment is $. (Round to the nearest dollaras positive cash flow.)The EUAC for outside treatment is $. (Round to the nearest dollaras positive cash flow.)The most economical alternative is

An oil refinery finds that it is necessary to treat the waste liquids from new process before discharging them into a stream. In-house treatme will have an annual cost of $50,000 the first year, but process improvements will allow the annual cost to decline by $5,000 each subsequent year. As an alternative, an outside company will process the wastes for an initial cost of $24,500 and an annual fixed price of $22,500/year throughout the 10 year period. Either way, there is no ed to treat the wastes after 10 years Using the AW method

An oil refinery finds that it is necessary to treat the waste liquids from new process before discharging them into a stream. In-house treatme will have an annual cost of $50,000 the first year, but process improvements will allow the annual cost to decline by $5,000 each subsequent year. As an alternative, an outside company will process the wastes for an initial cost of $24,500 and an annual fixed price of $22,500/year throughout the 10 year period. Either way, there is no ed to treat the wastes after 10 years Using the AW method

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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