Three methods to dispose of nonhazardous waste have been developed—land application, fluidizedbed incineration, and private disposal contract. Use AW analysis and an associated scatter chart of AW versus i values to select the economically best alternative for interest rates between i = 6 % and i = 24% in 3% increments. (Note: This is an extension of Problem 6.22.) 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
Three methods to dispose of nonhazardous waste have been developed—land application, fluidizedbed incineration, and private disposal contract. Use AW analysis and an associated scatter chart of AW versus i values to select the economically best alternative for interest rates between i = 6 % and i = 24% in 3% increments. (Note: This is an extension of Problem 6.22.) 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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Three methods to dispose of nonhazardous waste
have been developed—land application, fluidizedbed
incineration, and private disposal contract.
Use AW analysis and an associated scatter chart of
AW versus i values to select the economically best
alternative for interest rates between i = 6 % and
i = 24% in 3% increments. (Note: This is an extension
of Problem 6.22.)
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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