Question: An environmental engineer is considering 3 methods for disposing of non-hazardous chemical sludge. The methods are Land Application, Fluidized-bed Incineration, and Private Disposal Contract. The
An environmental engineer is considering 3 methods for disposing of non-hazardous chemical sludge. The methods are Land Application, Fluidized-bed Incineration, and Private Disposal Contract. The estimated cash flows associated with each option are listed in the table below. Using the annual worth method and a 12% per year interest rate, determine the least cost option.
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| Land Application | Incinerator | Contract | |
| 1st Cost | $110,000 | $800,000 | $0 |
| Annual Cost | $95,000 | $60,000 | $190,000 |
| Salvage Value | $15,000 | $250,000 | $0 |
| Life Span | 3 yrs | 6 yrs | 2yrs |
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