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Pollution control equipment must be purchased to remove the suspended organic material from liquid being discharged from a vegetable packing plant. Two alternative pieces of

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Pollution control equipment must be purchased to remove the suspended organic material from liquid being discharged from a vegetable packing plant. Two alternative pieces of equipment are available that would accomplish the task. Alternative A unit costs $8000 and has a 5-year useful life. Alternative B unit, on the other hand, costs $12,000 but will have a 10 -year useful life. With inflation, equipment costs are rising at 6% per year, compounded annually, so when the Alternative A unit needed to be replaced, the cost would be much more than $8000. Based on a 10-year analysis period, and a 15% minimum attractive rate of return, which pollution control equipment should be purchased? Pollution control equipment must be purchased to remove the suspended organic material from liquid being discharged from a vegetable packing plant. Two alternative pieces of equipment are available that would accomplish the task. Alternative A unit costs $8000 and has a 5-year useful life. Alternative B unit, on the other hand, costs $12,000 but will have a 10 -year useful life. With inflation, equipment costs are rising at 6% per year, compounded annually, so when the Alternative A unit needed to be replaced, the cost would be much more than $8000. Based on a 10-year analysis period, and a 15% minimum attractive rate of return, which pollution control equipment should be purchased

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