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[ 4 pts. ] A pulp and paper company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace
[ 4 pts. ] A pulp and paper company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprietary "Oxypure" process. The relevant information for each process is shown. Use an interest rate of 9% per year. Which one of the following value is closest to the replacement value? Original cost 6 years ago. (S) Investment cost now, (S) Current market value, (S) Annual operating cost, (S) Salvage value, (S) Remaining life, (years) Current Process Oxypure Process -450,000 -850,000 25,000 -240,000 -70,000 0 55,000 6 11 Select one: O a. 108,172 O b. 324,516 c. 183,892 d. 216,344
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