Question
A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of
A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The following data have been compiled for comparison:
| Incinerator A | Incinerator B |
Installed cost Annual O&M costs Service life Salvage value | $1,200,000 $50,000 20 years $60,000
| $750,000 $80,000 10 years $30,000
|
If the firms MARR is known to be 13%, determine the processing cost per ton of solid waste by each incinerator. Assume that incinerator B will be available in the future at the same cost.
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