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7) (Turton 10.25) During the design of a new process to manufacture nanocomposites, several alternative waste treatment processes are being considered. The base case is
7) (Turton 10.25) During the design of a new process to manufacture nanocomposites, several alternative waste treatment processes are being considered. The base case is the main waste treatment process, and the options are modifications to the base case. Not all options are compatible with each other, and the economic data on the only possible combinations are as follows: Capital Investment Annual, After-Tax Cash Flow Case (Smillion) ($thousand/y) Base 5.0 750 Base + option 1 5.1 770 Base + option 1 + option 2 5.3 790 Base + option 3 5.2 782 Base + option 1 + option 3 5.4 810 The nondiscounted, internal hurdle rate for investment is 14% p.a., after tax. Which waste treatment process do you recommend
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