Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cleanville Environmental Services is evaluating two alternative methods for the disposing of municipal waste. The first involves developing a landfill site near the city. Costs
Cleanville Environmental Services is evaluating two alternative methods for the disposing of municipal waste. The first involves developing a landfill site near the city. Costs of the site include $950,000 start-up costs, $100,000 closedown costs 40 years from now, and operating costs of $15,000 per year. Starting in 9 years, it is expected that there will be revenues from user fees of $29,000 per year. The alternative is to ship the waste out of the region. An area firm will agree to a long-term contract to dispose of the waste for $135,000 per year. Using the annual worth method, which alterative is economically preferred for a MARR of 14 percent? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%. V is the economically preferred choice. The annual cost of the landfill is $. The annual cost of the long-term contract is $135,000. The (Round to the nearest dollar as needed.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started