A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The data in Table P6.45 have been compiled for comparison

If the firm's MARR is known to be 13%, determine the processing cost per ton of solid waste incurred by each incinerator. Assume that incinerator B will be available in the future at the same cost.

Transcribed Image Text:

Incinerator A Incinerator B Installed cost Annual 0&M costs Service life Salvage value Income taxes $1,300,000 850,000 $100,000 10 years $30,000 S30,000 $70,000 20 years $60,000 $40,000