The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The

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The initial cost of a packed-bed degassing reactor for removing trihalomethanes from potable water is $84,000. The annual operating cost for power, site maintenance, etc. is $13,000. If the salvage value of the pumps, blowers, and control systems is expected to be $9000 at the end of 10 years, the AW of the packed-bed reactor, at an interest rate of 8% per year, is closest to:

(a) $−26,140

(b) $−25,518

(c) $−24,900

(d) $−13,140

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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