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Please show all work and be Neat!! Question 1 Two incinerators are being considered by a waste management company. Design A has an initial cost
Please show all work and be Neat!!
Question 1 Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual operating and maintenance costs of $750,000, and requires overhauls every 5 years at a cost of $1,225,000. Design B is more sophisticated, including computer controls; it has an initial cost of $6,250,000, has annual operating and maintenance costs of $550,000, and requires overhauls every 10 years at a cost of $3,375,000. Click here to access the TVM Factor Table Calculator using a 6.5 %/year interest rate, determine the capitalized cost for each design. Design A: $ Design B: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 400. Recommend which design should be chosenStep by Step Solution
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