Question: A metal plating company is considering four different methods for recovering by-product heavy metals, from a manufacturing site's liquid waste. The investment costs and incomes
A metal plating company is considering four different methods for recovering by-product heavy metals, from a manufacturing site's 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. Method First Cost, $ Salvage Value, $ Annual Income, $/year A -$32,000 $1,000 $6,000 B -$36,000 $2,000 $5,000 C -$41,000 $500 $9,000 D -$53,200 $2,000 $6,500 If the methods are independent, because they can be implemented at different plants, which ones are acceptable? Start your analysis by filling the cash flows for each method into the following tables. State your answers for IRR with a precision of two decimal points (example 7.82)
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