Your plant must add another boiler to its steam generating system. Bids have been obtained from two boiler manufacturers as follows:

If the MARR is 10% per year, which boiler would you recommend? Use the repeatability assumption.

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Boiler A Boiler B Capital investment $50,000 $120,000 40 years $20,000 Useful life, N Market value at 20 years $10,000 EOY N Annual operating 9,000 3,000, increasing $300 per year after the first year costs