Question
Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to
Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save?
| Option | First Cost | O&M Cost/Year | Salvage | Life |
| 1 | $15 M | $5 M | $4 M | 10 years |
| 2 | $20 M | $3 M | $6 M | 20 years |
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
