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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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