Your plant must add another boiler to its steam generating system. Bids have been obtained from two boiler manufacturers as follows:

If the MARR is 10% per year, which boiler would you recommend? Use the repeatability assumption.

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Boiler A Boiler B Capital investment Useful life, N $100,000 40 years $20,000 $50,000 20 years Market value at $10,000 ΕΟΥΝ Annual operating $9,000 $3,000, increasing $100 per year after the first costs year