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X%= 5% , Y%= 15% , f%= 6% , $A= 400$ i%= 7% 6. The Consolidated Oil Company must install antipollution equipment in a new
X%= 5% , Y%= 15% , f%= 6% , $A= 400$ i%= 7%
6. The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal dean air standards. Four design alternatives are being considered, which will have investment and annual operating costs as shown in the table below. Assuming a useful life of 10 years for each design, no salvage value, and a desired before-tax MARR of Y% (please see the table for your value) on its capital, determine which design should be selected based on PW of total cash flow. $600,000 Equipment Type B C D $760,000 $1,240,000 $1,600,000 Investment (first) cost Annual expenses: Power Labor Maintenance Taxes and insurance $68,000 $40.000 $660,000 $12,000 $68,000 $45,000 $600,000 $15,000 $120,000 $65,000 $420,000 $25,000 $126,000 $50,000 $370,000 $28,000Step by Step Solution
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