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A company is considering two types of incinerators to burn the waste generated from a production process. Two incinerators have a combustion capacity of 20

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A company is considering two types of incinerators to burn the waste generated from a production process. Two incinerators have a combustion capacity of 20 tonnes per day. The data below are used for comparing both incinerators: Incinerator A Incinerator B Installed cost $1300000 $750,000 Annual O&M costs $50,000 $82000 Service life (years) 20 10 Salvage value $60,000 $30000 Income taxes $39000 $30,000 If the firm's MARR is known to be 11%, determine the processing cost per tonne of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost. Note: Do not add the negative sign in your answers (Numerical values only in 2 decimal places) Equivalent Annual Cost: AEC(11%)a=$ AEC(11%)=$ Processing cost per tonne: CAN per tonne CB= per tonne Better choice

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