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5. A carbon-steel reactor costs $20,000 and has an estimated life of three years in a corrosive environment. A stainless-steel reactor costs $35,000 and has
5. A carbon-steel reactor costs $20,000 and has an estimated life of three years in a corrosive environment. A stainless-steel reactor costs $35,000 and has an estimated life of 10 years in the same corrosive environment. The salvage value of the carbon-steel reactor is $2500(1+0.1h), and the salvage value of the stainless steel reactor is $5000. The reactor will be needed indefinitely. Using 10% interest which reactor should be purchased? Why? h=2
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