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13-13 The Clap Chemical Company needs a lar e insula stainless steel tank to expand its plant. A r recent ed brewery has offered to
13-13 The Clap Chemical Company needs a lar e insula stainless steel tank to expand its plant. A r recent ed brewery has offered to sell their tank for clos $15,000 delivered. The price is so low that Cla believes it can sell the tank at any future time recover its $15,000 nvestment. Installing the tank will cost S9000 and remov- ing it will cost $5000. The outside of the tank is covered with heavy insulation that requires consid- erable maintenance. This will cost $3500 in and increase by $1000 per year (a) Based on a 12% before-tax MARR, what life of year l the insulated tank has the lowest EUAC? (b) When the insulated tank is replaced by another tank is the replacement's economic life likely to be shorter or larger? Explain
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