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An oil refinery finds that it is necessary to treat the waste liquids from a new process before discharging them into a stream . The
An oil refinery finds that it is necessary to treat the waste liquids from a new process before discharging them into a stream . The treatment will cost $ 40,000 the first year , but process Improvements will allow the costs to declina by $ 4.000 each year . As an alternative , an outside company will process the wastes for the fixed price of $ 20.000 / year throughout the 14 year period , payable at the beginning of each year . Either way , there is no need to treat the wastes after 14 years . Use the annual worth method to determine how the wastes should be processed . The company's MARR IS 12 %
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