The supervisor ofa community swimming pool has developed two methods for chlorinating the pool. If gaseous chlorine is added, a chlorinator will be required that has an initial cost of RM 8,000 and a useful life of 5 years. The chlorine will cost RM 650 per year, and the labor cost will be RM 800 per year. Alternatively, dry chlorine can be added manually at a cost of RM 1,000 per year for chlorine and RM 1, 900 per year for labor. Recommend the best option the basis of a present worth analysis if the interest rate is 10% per year.

ENGR.ECONOMIC ANALYSIS
14th Edition
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Chapter1: Making Economics Decisions
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Subject : Economy and Engineering Management

The supervisor of a community swimming pool has developed two methods for
chlorinating the pool. If gaseous chlorine is added, a chlorinator will be required that has
an initial cost of RM 8,000 and a useful life of 5 years. The chlorine will cost RM 650 per
year, and the labor cost will be RM 800 per year. Alternatively, dry chlorine can be added
manually at a cost of RM 1,000 per year for chlorine and RM 1, 900 per year for labor.
Recommend the best option the basis of a present worth analysis if the interest rate is 10%
per year.
Transcribed Image Text:The supervisor of a community swimming pool has developed two methods for chlorinating the pool. If gaseous chlorine is added, a chlorinator will be required that has an initial cost of RM 8,000 and a useful life of 5 years. The chlorine will cost RM 650 per year, and the labor cost will be RM 800 per year. Alternatively, dry chlorine can be added manually at a cost of RM 1,000 per year for chlorine and RM 1, 900 per year for labor. Recommend the best option the basis of a present worth analysis if the interest rate is 10% per year.
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