A metal plating company is considering four different methods for recovering by-product heavy metals from a manufacturing

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A metal plating company is considering four different methods for recovering by-product heavy metals from a manufacturing site€™s liquid waste. The investment costs and annual net incomes associated with each method have been estimated. All methods have an 8-year life; the MARR is 11% per year; and an AW-based ROR analysis is required.

(a) If the methods are independent (because they can be implemented at different plants), which ones are acceptable?

(b) If the methods are mutually exclusive, determine which one should be selected.

Annual Net Income, $IYear Salvage Value, $ +1,000 First Cost, $ -30,000 Method A +4,000 +5,000 -36,000 -41,000 +2,000 +5



MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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