The city's Public Works Department must decide between two water purification systems. The cost of system 11 is known and is provided in the table. The cost of chemicals for system 2 is unknown. System 2 uses chemicals at a rate of 58400 pounds per year. At what price (dollars per pound) of chemicals for system 2 are the two options equivalent? Interest rate is 6%, and the analysis period is 20 years. Solve using annual cash flow analysis. Initial cost Annual Chemical Cost Lifetime (years) Part 1 System 1 322000 45000 20 Sysetm 2 539000 Unknown 20

The city's Public Works Department must decide between two water purification systems. The cost of system 11 is known and is provided in the table. The cost of chemicals for system 2 is unknown. System 2 uses chemicals at a rate of 58400 pounds per year. At what price (dollars per pound) of chemicals for system 2 are the two options equivalent? Interest rate is 6%, and the analysis period is 20 years. Solve using annual cash flow analysis. Initial cost Annual Chemical Cost Lifetime (years) Part 1 System 1 322000 45000 20 Sysetm 2 539000 Unknown 20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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