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Five years ago . Chemical plant investeol. $ 95,000, in pumping station on a Nearly Viver to provide the water ouequipceol tor ther Production process.
Five years ago . Chemical plant investeol. $ 95,000, in pumping station on a Nearly Viver to provide the water ouequipceol tor ther Production process. Staight-line depreciation is employeol for tart purposes using a 30-year life and zero baliage Value A nearby city has offered to purchase the pumping stating for $75,000 as it is in the process of developing a city water distribution mustem. The coming city is willing to sign a 10-year contreact with the plant to provide the plant with its requireal volume of water for a price of $ 20,000 per year. Plant officials estimate that the salvage value of the pumping Station 10 years hence will be addressed about $27,000 The before- tase MARR is 10% per year. An effective income fare rate of 30% is to be assumedle compare the amuse! cast Calter foxes of the defender (keep the pumping altaution) to the challenger Casell estation 140 the city) Amal help plant management determine the more economical Courbl of Gotion. Assume study periool to 10 years, The Evac Defender is? The EuAC Challenges is
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