An environmental engineer wants to evaluate three different
methods for disposing of nonhazardous chemical waste: land
application, fluidized-bed incineration, and private disposal
contract. Use the estimates below to help her determine which has
the least cost at i = 8% per year on the basis of an
annual worth evaluation.
Land
Incineration
Contract
First Cost
$-140,000
$-700,000
0
AOC per Year
$-85,000
$-40,000
$-130,000
Salvage Value
$20,000
$250,000
0
Life
4 years
6 years
2 years
The environmental engineer selects...