Question: A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with

A large textile company is trying to decide which sludge dewatering process it should use ahead of its sludge drying operation. The costs associated with centrifuge and belt press systems are shown. Compare them on the basis of their annual worths using an interest rate of 10% per year.
System Centrifuge Belt Press
First cost, $ 250,000170,000
AOC, $/year 31,00035,000
Overhaul in year 2, $ --26,000
Salvage value, $ 40,00010,000
Life, years 64
The annual worth of the centrifuge system is $
, and the annual worth of the belt press system is $
.
The system selected on the basis of the annual worth analysis is the
(Click to select)
system.

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