Question
A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm
A battery manufacturing plant has been ordered to cease discharging acidic waste liquids containing mercury into the city sewer system. As a result, the firm must now adjust the pH and remove the mercury from its waste liquids. Three firms have provided quotations on the necessary equipment. An analysis of the quotations provided the following table of costs.
Bidder: Foxhill Instrument
Installed Cost: 70,000
Annual Operating Cost: 5,000
Annual Income from Mercury Recovery: 6500
Salvage Value: 10,000
Bidder: Quicksliver
Installed Cost: 50,000
Annual Operating Cost: 5,000
Annual Income from Mercury Recovery: 2500
Salvage Value: 0
Bidder: Almaden
Installed Cost: 90,000
Annual Operating Cost: 5000
Annual Income from Mercury Recovery: 7800
Salvage Value: 10000
If the installation can be expected to last 15 years and money is worth 12%, which equipment should be purchased?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
