ite A or Site B. After sorting, some of the soli ill be transported to an electric power plant wh ill be used as fuel. Data for the hauling of ref ach site to the power plant are shown below: Site A Site B Average hauling distance 4 miles 3 miles
ite A or Site B. After sorting, some of the soli ill be transported to an electric power plant wh ill be used as fuel. Data for the hauling of ref ach site to the power plant are shown below: Site A Site B Average hauling distance 4 miles 3 miles
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:A municipal solid-waste site for a city must be located at
Site A or Site B. After sorting, some of the solid refuse
will be transported to an electric power plant where it
will be used as fuel. Data for the hauling of refuse from
each site to the power plant are shown below:
Site A
Site B
Average hauling
distance
Annual rental fee
4 miles
3 miles
for solid-waste site $5,000
Hauling cost
$100,000
$1.50/yd³-mile $1.50/yd³-mile
If the power plant will pay $8.00 per cubic yard of sorted
solid waste delivered to the plant, where should the solid-
waste site be located? Use the city's viewpoint and assume

Transcribed Image Text:that 200,000 cubic yards of refuse will be hauled to the
plant for one year only. One site must be selected.
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