Q4= SAUDI Chemical Company is considering two types of equipment for burning waste material. Both equipment has burning capacity of 20 tons per day. The following data have been compiled for comparison of both equipment's. ITEM Installation cost Annual Operation & Maintenance cost Salvage value Income Tax Service Life EQUIPMENT A $1,220,000 $55,000 $65,000 $45,000 20 years EQUIPMENT B $ 770,000 $85,000 $35,000 $35,000 10 years

Q4= SAUDI Chemical Company is considering two types of equipment for burning waste material. Both equipment has burning capacity of 20 tons per day. The following data have been compiled for comparison of both equipment's. ITEM Installation cost Annual Operation & Maintenance cost Salvage value Income Tax Service Life EQUIPMENT A $1,220,000 $55,000 $65,000 $45,000 20 years EQUIPMENT B $ 770,000 $85,000 $35,000 $35,000 10 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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