You have been tasked with recommending one of the mutually exclusive industrial sanitation control systems summarized below.

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You have been tasked with recommending one of the mutually exclusive industrial sanitation control systems summarized below. The life of both alternatives is 30 years, and residual s are negligible. Use the benefit€“cost ratio method in your analysis. If the is 8% per year, which answer below would you recommend?

Alternative Gravity-fed Vacuum-led Capital investment Annual benefits less costs $1,000,000 $800,000 $106,500 $119,000

(a) Gravity-fed

(b) Vacuum-led

(d) Neither system

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... MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...

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The BC ratio for the gravityled system is 106500 800000 AP ...View the full answer

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Question Posted: Dec 06, 2018 08:39 AM

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