Question
Problem 4 10 points Company D needs to decide which option to choose for their pipeline routings. Option A B Initial Cost 225,000,000 350,000,000 Annual
Problem 4 10 points
Company D needs to decide which option to choose for their pipeline routings.
| Option | A | B |
| Initial Cost | 225,000,000 | 350,000,000 |
| Annual Operation Cost | 30,000,000 | 6,000,000 |
| Maintenance Cost Per 40 Years | 50,000,000 | 0 |
| Estimated Life Time (Years) | Infinite | Infinite |
Find the capital cost of each option with MARR = 9% per year and determine which option would you recommend?
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Auditing And Assurance Services A Systematic Approach
Authors: William Messier, Steven Glover, Douglas Prawitt
12th Edition
1264100671, 978-1264100675
