Choose the most economical alternative in disposing non-hazardous chemical sludge using (a) PW analysis, (b) Future Worth Analysis, and (c) Annual Worth Analysis. (d) If the contract award cost increases by 20% every 2-year renewal determine the PW of each alternative. Contract Land Application Incineration -130,000 First Cost, Php -900,000 0 -60,000 -120,000 Annual Operating Costs, Php/year -95,000 Salvage Value 25,000 300,000 0 Life, years 3 6 2

Choose the most economical alternative in disposing non-hazardous chemical sludge using (a) PW analysis, (b) Future Worth Analysis, and (c) Annual Worth Analysis. (d) If the contract award cost increases by 20% every 2-year renewal determine the PW of each alternative. Contract Land Application Incineration -130,000 First Cost, Php -900,000 0 -60,000 -120,000 Annual Operating Costs, Php/year -95,000 Salvage Value 25,000 300,000 0 Life, years 3 6 2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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