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 ValueSalvage 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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