Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save? Option First Cost Salvage Life 1 2 $15 M $20 M O&M Cost/Year $5 M $3 M $4 M $6 M 10 years 20 years

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Which process line should be built for a new chemical? The expected market for the chemical
is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with
present worth. How much does the better choice save?
Option
Salvage
Life
1
2
First Cost
$15 M
$20 M
O&M
Cost/Year
$5 M
$3 M
$4 M
$6 M
10 years
20 years
Transcribed Image Text:Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save? Option Salvage Life 1 2 First Cost $15 M $20 M O&M Cost/Year $5 M $3 M $4 M $6 M 10 years 20 years
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