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using a so- Five years ago a chemical plant invested. $ 95,000, in firmping Station on a Nearby given to provide the watey Plequiceol toy

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using a so- Five years ago a chemical plant invested. $ 95,000, in firmping Station on a Nearby given to provide the watey Plequiceol toy their Production process. Straight-line depreciation is employeol for fare purposes :year life and zero Salvage Value A nearby city has offered to purchase the pumping stating for $ 75,000 as it is in the process of developing a city water distribution mustem. The presening city is willing to sign a 10-year contreact with the plant to provide the plant with its requireal volume of water for a price of $ 80,000 per year. Plant officials estimate that the salvage value of the pumping Statien 10 years hemel will be assumeok about $ 27,000 The betove-tase MARR is 10% Dey year. An effective income ture rate of 30% is to be assumesla compare the amma! cast Calten foxes of the defender (keep the pumping studion) to the challenger Cool station 40 the city) Amol help plant management determine the more economical Courbl of Gotion. Assume study periool to 10 years, The EUAC Defender is? The EvAC Challenger is

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