Question: A paper mill is considering two types of pollution control equipment. The firm wants a 12% rate of return on any avoidable increments of investment.

A paper mill is considering two types of pollution control equipment.
A paper mill is considering two types of pollution control

The firm wants a 12% rate of return on any avoidable increments of investment. Which equipment should be purchased?

Neutralization Precipitation Tnitial cost Annual chemical $700,000 40,000 $500.000 110,000 cost Salvage value Useful life. in years 175,000 125,000

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