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A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The data in the table below have been compiled for comparison. If the firm's MARR is known to be 13%, determine the processing cost per ton of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost and there are 365 days in a year.

A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The data in the table below have been compiled for comparison. If the firm's MARR is known to be 13%, determine the processing cost per ton of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost and there are 365 days in a year.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter14: Quality And Environmental Cost Management
Section: Chapter Questions
Problem 6CE: Pinter Company had the following environmental activities and product information: 1. Environmental...
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6. A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The data in the table below have been compiled for comparison. If the firm's MARR is known to be 13%, determine the processing cost per ton of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost and there are 365 days in a year. 10 Click the icon to view the additional information. 11 Click the icon to view the interest factors for discrete compounding when MARR = 13% per year. The processing cost for Incinerator A is $ per ton. (Round to the nearest cent.) The processing cost for Incinerator B is $ per ton. (Round to the nearest cent.) 10: More Info Incinerator A Incinerator B Installed cost $1,300,000 $850.000 Annual O&M costs $70,000 $100,000 Service life 20 years 10 years Salvage value $60.000 $30.000 Income taxes $40,000 $30,000 11: More Info
Transcribed Image Text:6. A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The data in the table below have been compiled for comparison. If the firm's MARR is known to be 13%, determine the processing cost per ton of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost and there are 365 days in a year. 10 Click the icon to view the additional information. 11 Click the icon to view the interest factors for discrete compounding when MARR = 13% per year. The processing cost for Incinerator A is $ per ton. (Round to the nearest cent.) The processing cost for Incinerator B is $ per ton. (Round to the nearest cent.) 10: More Info Incinerator A Incinerator B Installed cost $1,300,000 $850.000 Annual O&M costs $70,000 $100,000 Service life 20 years 10 years Salvage value $60.000 $30.000 Income taxes $40,000 $30,000 11: More Info
Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1 1.1300 0.8850 1.0000 1.0000 0.8850 1.1300 1.2769 0.7831 2.1300 0.4695 1.6681 0.5995 1.4429 0.6931 3.4069 0.2935 2.3612 0.4235 4 1.6305 0.6133 4.8498 0.2062 2.9745 0.3362 1.8424 0.5428 6.4803 0.1543 3.5172 0.2843 6 2.0820 0.4803 8.3227 0.1202 3.9975 0.2502 7 2.3526 0.4251 10.4047 0.0961 4.4226 0.2261 2.6584 0.3762 12.7573 0.0784 4.7988 0.2084 9 3.0040 0.3329 15.4157 0.0649 5.1317 0.1949 10 3.3946 0.2946 18.4197 0.0543 5.4262 0.1843 11 3.8359 0.2607 21.8143 0.0458 5.6869 0.1758 12 4.3345 0.2307 25.6502 0.0390 5.9176 0.1690 13 4.8980 0.2042 29.9847 0.0334 6.1218 0.1634 14 5.5348 0.1807 34.8827 0.0287 6.3025 0.1587 15 6.2543 0.1599 40.4175 0.0247 6.4624 0.1547 16 7.0673 0.1415 46.6717 0.0214 6.6039 0.1514 17 7.9861 0.1252 53.7391 0,0186 6.7291 0.1486 18 9.0243 0.1108 61.7251 0.0162 6.8399 0.1462 19 10.1974 0.0981 70.7494 0.0141 6.9380 0.1441 20 11.5231 0.0868 80,9468 0.0124 7.0248 0.1424 21 13.0211 0.0768 92.4699 0.0108 7.1016 0.1408 22 14.7138 0.0680 105.4910 0.0095 7.1695 0.1395 23 16.6266 0.0601 120.2048 0.0083 7.2297 0.1383 24 18.7881 0.0532 136.8315 0.0073 7.2829 0.1373 25 21.2305 0.0471 155.6196 0.0064 7.3300 0.1364
Transcribed Image Text:Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor (F/P, i, N) (P/F, i, N) (F/A, i, N) (A/F, i, N) (P/A, i, N) (A/P, i, N) 1 1.1300 0.8850 1.0000 1.0000 0.8850 1.1300 1.2769 0.7831 2.1300 0.4695 1.6681 0.5995 1.4429 0.6931 3.4069 0.2935 2.3612 0.4235 4 1.6305 0.6133 4.8498 0.2062 2.9745 0.3362 1.8424 0.5428 6.4803 0.1543 3.5172 0.2843 6 2.0820 0.4803 8.3227 0.1202 3.9975 0.2502 7 2.3526 0.4251 10.4047 0.0961 4.4226 0.2261 2.6584 0.3762 12.7573 0.0784 4.7988 0.2084 9 3.0040 0.3329 15.4157 0.0649 5.1317 0.1949 10 3.3946 0.2946 18.4197 0.0543 5.4262 0.1843 11 3.8359 0.2607 21.8143 0.0458 5.6869 0.1758 12 4.3345 0.2307 25.6502 0.0390 5.9176 0.1690 13 4.8980 0.2042 29.9847 0.0334 6.1218 0.1634 14 5.5348 0.1807 34.8827 0.0287 6.3025 0.1587 15 6.2543 0.1599 40.4175 0.0247 6.4624 0.1547 16 7.0673 0.1415 46.6717 0.0214 6.6039 0.1514 17 7.9861 0.1252 53.7391 0,0186 6.7291 0.1486 18 9.0243 0.1108 61.7251 0.0162 6.8399 0.1462 19 10.1974 0.0981 70.7494 0.0141 6.9380 0.1441 20 11.5231 0.0868 80,9468 0.0124 7.0248 0.1424 21 13.0211 0.0768 92.4699 0.0108 7.1016 0.1408 22 14.7138 0.0680 105.4910 0.0095 7.1695 0.1395 23 16.6266 0.0601 120.2048 0.0083 7.2297 0.1383 24 18.7881 0.0532 136.8315 0.0073 7.2829 0.1373 25 21.2305 0.0471 155.6196 0.0064 7.3300 0.1364
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