A paper mill is considering two types of wastewater reuse equipment:

a.

Answer the questions. Round the answers to the nearest integer.

1. The present worth (PW) of the Neuralization option is $
2. The annual equivalent worth (AE) of the Precipitation option is $
3. Which option should be chosen? Choose Neuralization or Precipitation

EXCEL

A paper mill is considering two types of wastewater reuse equipment: Neuralization Precipitation Initial Investment $700,000 $500,000 Annual chemical cost $220,000 $250,000 Annual maintenance cost $40,000 $110,000 Salvage value $175,000 $125,000 Interest rate 8% 8% Useful life 5 years 5 years