A chemical company is considering two types of incinerators to burn solid waste generated by a chemical operation. Both incinerators have a burning capacity of 20 tons per day. The following data have been compiled for comparison of the two incinerators:

If the firm€™s MARR is known to be 13%, determine the processing cost per ton of solid waste for each incinerator. Assume that incinerator B will be available in the future at the same cost.

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Incinerator A Item Incinerator B Installed cost Annual O&M costs Service life $750,000 $1,200,000 $80,000 $50,000 20 years 10 years $60,000 Salvage value $30,000 $40,000 $30,000 Income taxes