Question: 5, Your client is installing a new duct tape manufacturing line that coats a toluene-t onto the plastic web; dries the adhesive, which evaporates all

 5, Your client is installing a new duct tape manufacturing line

5, Your client is installing a new duct tape manufacturing line that coats a toluene-t onto the plastic web; dries the adhesive, which evaporates all the toluene, and then s packages it into commercial duct tape. Uncontrolled, the process would emit very high amounts of toluene and Federal regulations require they install a thermal oxidizer to toluene that is emitted. You are asked to evaluate three different alternatives, all of which are thermal oxidizers that essentially burn the coater exhaust at 14000. remove 99% of the i) A direct flame thermal oxidizer with no heat recovery; i) A "recuperat ive" thermal oxidizer in which the hot exhaust preheats the coater exhaust, recovering 70% of the energy; and iii) A "regenerative" thermal oxidizer in which the hot exhausts preheats the coater exhaust, recovering 95% of the energy. Based on EAOC, which is your best choice? Data for the options are provided below. The effective annual interest rate is 4%. Direct Flame Oxidizer $304,000 $25,000 $1,261,000 $5,000 $5,000 $5,000 $10,000 Option Recuperative egenerative Oxidizer Oxidizer $723,000 1.121,000 Fixed Capital Investment Annual Electrical Cost Annual Fuel Cost Maintenance (ending year 5) Maintenance (ending year 10) Maintenance (ending year 15) Salvage Value (ending year 20) Life (years) $55,000 $332,000 $5,000 $10,000 $5,000 $84,000 $79,000 S5,000 $150,000 $5,000 $25,000$150,000 20 20 20

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!