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.

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

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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