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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

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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. Quotations from three firms are included in the following table of costs. Bidder Installed Cost Annual Operating Annual Income from Mercury Cost Recovery Salvage value Foxhill Instrument 35,000 8000 2000 20000 Quicksilver 40,000 7000 2200 0 Almaden 100,000 2000 3500 0 If the installation will last 20 years and money is worth 7%, which equipment should be purchased? Solution 1. Since the necessary waste treatment and mercury recovery is classed as the alternative with the 2. Calculate PW of Cost for each alternative PWCruhi choose (P/Ain) (P/F,in)=5 PW Coucker (P/Ai,n) (P/F, in)=5 PWC Amaden (P/Ain) (P/Fin) 5 3. Select the bid

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