The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal clean-air standards. Four design alternatives are being considered, which will have capital investment and annual operating expenses as shown in the table. Assume a useful life of 11 years for each design, no market value, a desired MARR of 13% per year, and an analysis period of 11 years. Which one (if any) should be selected? Solve this problem using the ERR method. Let = 10% per year. Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Which alternative would you choose as a base one? Choose the correct answer below. O A. D2 OB. D3 OC. D1 OD. 14 Analyze the difference between the base alternative and the second-choice alternative. ERRA V %. (Round to one decimal place.) Analyze the difference between the current base alternative and the third-choice alternative. ERRA V- v)=%. (Round to one decimal place.) Analyze the difference between the current base alternative and the fourth-choice alternative. ERRA %. (Round to one decimal place.) Which alternative should be selected? Choose the correct answer below. O A. D3 B. D1 OC. D2 OD. D4 O E. None of the above D1 Alternative Design D2 D3 $770,000 $1,240,000 D4 $1,600,000 $590,000 Capital investment Annual expenses: Power Labor Maintenance Taxes and insurance 68,000 40,000 650,000 11,000 70,000 40,000 590,000 16,000 120,000 65,000 430,000 25,000 126,000 45,000 370,000 25,000 Discrete Compounding; i = 10% Single Payment Uniform Series Compound Present Compound Present Sinking Amount Worth Amount Worth Fund Factor Factor Factor Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F P/F F/A P/A A/F 1.1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 Capital Recovery Factor To Find A Given P / N FIP 1 1.1000 0.5762 0.4021 0.3155 0.2638 O 0 0 IAN 6 1.7716 0.5645 7.7156 4.3553 0.2296 0.2054 7 1.9487 0.5132 9.4872 0.1296 0.1054 0.0874 2.1436 11.4359 4.8684 5.3349 5.7590 0.4665 0.4241 0.1874 2.3579 13.5795 0.0736 0.1736 10 2.5937 0.3855 15.9374 6.1446 0.0627 0.1627 11 2.8531 0.3505 18.5312 6.4951 0.0540 0.1540 12 3.1384 0.3186 6.8137 0.0468 0.1468 0.1408 13 3.4523 21.3843 24.5227 27.9750 0.2897 7.1034 0.0408 14 3.7975 7.3667 0.0357 0.1357 0.2633 0.2394 15 4.1772 31.7725 7.6061 0.0315 0.1315 The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal clean-air standards. Four design alternatives are being considered, which will have capital investment and annual operating expenses as shown in the table. Assume a useful life of 11 years for each design, no market value, a desired MARR of 13% per year, and an analysis period of 11 years. Which one (if any) should be selected? Solve this problem using the ERR method. Let = 10% per year. Click the icon to view the alternatives description. Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. Which alternative would you choose as a base one? Choose the correct answer below. O A. D2 OB. D3 OC. D1 OD. 14 Analyze the difference between the base alternative and the second-choice alternative. ERRA V %. (Round to one decimal place.) Analyze the difference between the current base alternative and the third-choice alternative. ERRA V- v)=%. (Round to one decimal place.) Analyze the difference between the current base alternative and the fourth-choice alternative. ERRA %. (Round to one decimal place.) Which alternative should be selected? Choose the correct answer below. O A. D3 B. D1 OC. D2 OD. D4 O E. None of the above D1 Alternative Design D2 D3 $770,000 $1,240,000 D4 $1,600,000 $590,000 Capital investment Annual expenses: Power Labor Maintenance Taxes and insurance 68,000 40,000 650,000 11,000 70,000 40,000 590,000 16,000 120,000 65,000 430,000 25,000 126,000 45,000 370,000 25,000 Discrete Compounding; i = 10% Single Payment Uniform Series Compound Present Compound Present Sinking Amount Worth Amount Worth Fund Factor Factor Factor Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F P/F F/A P/A A/F 1.1000 0.9091 1.0000 0.9091 1.0000 1.2100 0.8264 2.1000 1.7355 0.4762 1.3310 0.7513 3.3100 2.4869 0.3021 1.4641 0.6830 4.6410 3.1699 0.2155 1.6105 0.6209 6.1051 3.7908 0.1638 Capital Recovery Factor To Find A Given P / N FIP 1 1.1000 0.5762 0.4021 0.3155 0.2638 O 0 0 IAN 6 1.7716 0.5645 7.7156 4.3553 0.2296 0.2054 7 1.9487 0.5132 9.4872 0.1296 0.1054 0.0874 2.1436 11.4359 4.8684 5.3349 5.7590 0.4665 0.4241 0.1874 2.3579 13.5795 0.0736 0.1736 10 2.5937 0.3855 15.9374 6.1446 0.0627 0.1627 11 2.8531 0.3505 18.5312 6.4951 0.0540 0.1540 12 3.1384 0.3186 6.8137 0.0468 0.1468 0.1408 13 3.4523 21.3843 24.5227 27.9750 0.2897 7.1034 0.0408 14 3.7975 7.3667 0.0357 0.1357 0.2633 0.2394 15 4.1772 31.7725 7.6061 0.0315 0.1315