An environmental engineer wants to evaluate three different methods for disposing of a non-hazardous chemical waste: land application, fluidized-bed incineration, and private disposal contract. Use the estimates below to help him determine which has the least cost at i = 10% per year, on the basis of an (a) annual worth, and (b) present worth evaluation. Land Incineration Contract First cost, $ −150,000 −900,000 0 AOC, $/year −95,000 −60,000 −140,000 Salvage value, $ 25,000 300,000 0 Life, years 4 6 2

Question

An environmental engineer wants to evaluate three
different methods for disposing of a non-hazardous
chemical waste: land application, fluidized-bed incineration,
and private disposal contract. Use the
estimates below to help him determine which has
the least cost at i = 10% per year, on the basis of an
(a) annual worth, and (b) present worth evaluation.
Land Incineration Contract
First cost, $ −150,000 −900,000 0
AOC, $/year −95,000 −60,000 −140,000
Salvage value, $ 25,000 300,000 0
Life, years 4 6 2

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