At what price (dollars per pound) of chemicals for system 2 are the two options equivalent? Interest

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At what price (dollars per pound) of chemicals for system 2 are the two options equivalent? Interest rate is 4%, and the analysis period is 20 years. Solve using annual cash flow analysis.

	System 1	Sysetm 2
Initial cost	254000	472000
Annual Chemical Cost	47000	Unknown
Lifetime (years)	20	20

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At what price (dollars per pound) of chemicals for system 2 are the two options equivalent?

Related Book For answer-question

Microeconomics

ISBN: 978-1292094632

12th edition

Authors: Michael Parkin

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Posted Date: Apr 14, 2023 12:37 AM

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At what price (dollars per pound) of chemicals for system 2 are the two options equivalent? Interest

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To compare the two systems we need to calculate the present value PV of the cash ... View the full answer

Microeconomics

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