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 tonnes per day. The following data have been compiled for comparison: 16 Incinerator A Incinerator B Installed cost $1300000 $750,000 Annual O&M costs $50,000 $75000 Service life (years) 10 Salvage value $60,000 $28000 Income taxes $36000 $30,000 If the firm's MARR is known to be 9%, determine the processing cost per tonne of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost Equivalent Annual Cost: AEC(9%)A=$ AEC(9%)3=$ Processing cost per tonne: = per tonne CB= per tonne Better choice