Land Application Inciner- ation Contract First cost, $ - 150,000 -900,000 - 60,000 -170,000 Annual cost, $/year Salvage value, $ -95,000 25,000 300,000 Life, years 4 2

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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An environmental engineer is considering three methods for disposing of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are below. (a) Determine which has the least cost on the basis of an annual worth comparison at 10% per year. (b) Determine the equivalent present worth value of each alternative using its AW value.

Land
Application
Inciner-
ation
Contract
First cost, $
- 150,000
-900,000
- 60,000 -170,000
Annual cost, $/year
Salvage value, $
-95,000
25,000
300,000
Life, years
4
2
Transcribed Image Text:Land Application Inciner- ation Contract First cost, $ - 150,000 -900,000 - 60,000 -170,000 Annual cost, $/year Salvage value, $ -95,000 25,000 300,000 Life, years 4 2
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