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-line Five years ago di chemical plant invested! $ 95,000 in pumping station on a Nearby Kiven to provide the water gequifecal toy their Production
-line Five years ago di chemical plant invested! $ 95,000 in pumping station on a Nearby Kiven to provide the water gequifecal toy their Production process. Straight depreciation is employeal for faze purposes using a 30-year Life and zero sablage Evalut. 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 System. The Benuing city.is willing to sign a 10 10-year contract with the plant to provide the plant with its required volume of water for a price of $ 80,000 per year. Plant officials estimate that the Salvage value of the pumping Statien 10 years hence will be assessed about $27,000 The before tase MARR is 10% per An effective income tax rate of 30% is to be assumedle compare the amual year. Cost Caltex taxas of the detender (krep the Pumping Station) to the challenger Casill station to the city) Amal help plant management determine the more economical Courel of cotien. Assume study periool is to years, The EUAC Defender is? The EUAC Challengers
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