10. 5.21 Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative environmental chambers for a project that will detail laboratory confirmations of online bacteria tests in chicken meat for the presence of E. coli 0157:H7 and Listeria monocytogenes. Answer the following questions for Charlene.

1. If the project study period is 6 years and i = 10% per year, perform an AW evaluation to determine which chamber is more economical.

2. Chamber D103 can be purchased with different options and, therefore, at a different installed cost and salvage value. They range from $300,000 to $500,000. Will the selection between alternatives change if one of these other models is installed?

3. Use single-cell spreadsheet functions to solve part b.

Table Summary: A table divided into 3 columns summarizes cost estimate for two different models of a chamber. The column headers are marked from left to right as: Chamber; D103; and 490G.

CChhaambbeerr DD110033 449900GG Installed cost, $ −400,000 −250,000 AOC, $ per year −4,000 −3,000 Salvage value, 10% of P, $ 40,000 25,000 Life, years 3 2