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A company must invest in a precipitator to meet EPA regulations. Four alternatives are available, all of which have the same capacity. The company's minimum

A company must invest in a precipitator to meet EPA regulations. Four alternatives are available, all of which have the same capacity. The company's minimum attractive rate of return is 8%, but it can earn 5% by investing in highly liquid investments. Which precipitator should be recommended?

A B C D
Cost 4500 5700 6750 7120
Life 10 10 10

10
O&M Costs 2700 2500 2200 2030
Salvage 0 0 0 0

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