A chemical processing corporation is considering three methods to dispose of a non-hazardous chemical sludge: land application, fluidized- bed incineration, and private disposal contract. The estimates for each method are shown. Determine which has the least cost on the basis of a present worth comparison at 10% per year: Land Application First cost, $ Annual operating Cost, $ per year Salvage value, $ Life, years -130,000 -95,000 25,000 3 Incineration -900,000 -60,000 300,000 6 When comparing these alternatives based on PW analysis, The equation of PWContract is: Selected Alternative on the basis of PW-analysis Contract 0 -120,000 Choose... Choose... Choose... 0 2

A chemical processing corporation is considering three methods to dispose of a non-hazardous chemical sludge: land application, fluidized- bed incineration, and private disposal contract. The estimates for each method are shown. Determine which has the least cost on the basis of a present worth comparison at 10% per year: Land Application First cost, $ Annual operating Cost, $ per year Salvage value, $ Life, years -130,000 -95,000 25,000 3 Incineration -900,000 -60,000 300,000 6 When comparing these alternatives based on PW analysis, The equation of PWContract is: Selected Alternative on the basis of PW-analysis Contract 0 -120,000 Choose... Choose... Choose... 0 2

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 19E

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