Question: Cleanville Environmental Services is evaluating two alternative methods for the disposing of municipal waste. The first involves developing a landfill site near the city. Costs

 Cleanville Environmental Services is evaluating two alternative methods for the disposing

Cleanville Environmental Services is evaluating two alternative methods for the disposing of municipal waste. The first involves developing a landfill site near the city. Costs of the site include $950,000 start-up costs, $100,000 closedown costs 40 years from now, and operating costs of $15,000 per year. Starting in 9 years, it is expected that there will be revenues from user fees of $29,000 per year. The alternative is to ship the waste out of the region. An area firm will agree to a long-term contract to dispose of the waste for $135,000 per year. Using the annual worth method, which alterative is economically preferred for a MARR of 14 percent? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 14%. V is the economically preferred choice. The annual cost of the landfill is $. The annual cost of the long-term contract is $135,000. The (Round to the nearest dollar as needed.)

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