4. In an oil refinery, an equipment is to be in-stalled for the treatment of greenhouse gases...
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4. In an oil refinery, an equipment is to be in-stalled for the treatment of greenhouse gases and the reduction of emissions. The company requires installing the equipment due to pressure from the government. Two mutually exclusive alternatives have been proposed to rectify the problem in Table 6-4. The life of both alternatives is 10 years, and MARR is 10% per year.
Use the IRR method ( incrementally ) to make a recommendation regarding which alternative to select.
Table 6-4
| Equipment 1 | Equipment 2 |
Capital investment | $125,000 | $75,500 |
Annual operation expenses | $14,000 | $5,600 |
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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