use the future worth method with co-terminated assumption to rank less expensive of the below alternatives. assume an interest rate of 5%. Also estimate Annual Worth (AW)

Use the future worth method with co-terminated assumption to rank the less expensive of the below alternatives. Assume an interest rate of 5% Alternatives Million $ Claus process $ million Million $ LO-CAT process Total 7.3 Total 30 Capital investment Acid gas injection Equipment Labor Management overhead $ million/year 0.4 10% 1.5 Overhead million $/year 10% 2 overhead Million $/year Add to total cost Annual operating cost Operation time 10% 1.5 Days per year 330 days per year 330 Days per year 330 Million $/year Product $/MT 1.5 50 Million $/year 2 Product S/MT 50 Operation cost Million $/year Surfur prices/MT No production MT: metric ton Plant capacity No production o Metric ton/year Useful life (years) 15 Market value 25 Problem 4 (10%) Estimate the AW (annual worth) of problem 3 for each alternative