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Consider these two alternatives for solid-waste removal: Alternative A: Build a solid-waste processing facility. Financial variables are as follows: Alternative B: Contract with dealers for
Consider these two alternatives for solid-waste removal: Alternative A: Build a solid-waste processing facility. Financial variables are as follows: Alternative B: Contract with dealers for solid-waste disposal after treatment process. Financial variables are as follows: a) Using the Declining Balance (DB) method for depreciation, determine the ratio of the depreciation, R of Alternative A. b) Which alternative is recommended? Take MARR = 10%. State all your assumptions. c) How much annual operating expense could Alternative A be in order to break even with Alternative B? d) To which factor Alternative B is more sensitive, annual operating expenses, repair costs, or annual fee? Explain Consider these two alternatives for solid-waste removal: Alternative A: Build a solid-waste processing facility. Financial variables are as follows: Alternative B: Contract with dealers for solid-waste disposal after treatment process. Financial variables are as follows: a) Using the Declining Balance (DB) method for depreciation, determine the ratio of the depreciation, R of Alternative A. b) Which alternative is recommended? Take MARR = 10%. State all your assumptions. c) How much annual operating expense could Alternative A be in order to break even with Alternative B? d) To which factor Alternative B is more sensitive, annual operating expenses, repair costs, or annual fee? Explain
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