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Marlo (a) Find the capitalized cost of a machine with a first cost of $60,000 and annual costs $10,000 per year for an infinite


Marlo (a) Find the capitalized cost of a machine with a first cost of $60,000 and annual costs $10,000 per year for an infinite life, at an interest rate of 10% per year (b) A water supply dam will cost $7 million to build and it will have erosion control costs of $800,000 every 5 years forever. At an interest rate of 10% per year, find the capitalized cost of this dam. Question 2 [2 Marks] A chemical processing corporation is considering three methods to dispose of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are shown below. Determine which alternative should be selected, using an MARR value of 10% per year. C A B First cost, $ -130,000 -900,000 0 Annual operating cost, $ per year -95,000 -60,000 -120,000 Salvage value, $ Life, years 25,000 300,000 3 6 02 2

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