Question: 1) A metal plating company is considering four different methods for recovering by-product heavy metals from a manufacturing sites liquid waste. The investment costs and
1) A metal plating company is considering four different methods for recovering by-product heavy metals from a manufacturing sites liquid waste. The investment costs and incomes associated with each method have been estimated. All methods have an 8-year life. The MARR is 11% per year. (a) If the methods are independent, because they can be implemented at different plants, which ones are acceptable? (b) If the methods are mutually exclusive, determine which one method should be selected, using a ROR evaluation.
|
| First | Salvage | Annual |
| Method | Cost, $ | Value, $ | Income, $/year |
| A | 30,000 | +1,000 | +4,000 |
| B | 36,000 | +2,000 | +5,000 |
| C | 41,000 | +500 | +8,000 |
| D | 53,000 | 2,000 | +10,500 |
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