Question: Engineering Economics Problem. 3. CEMEX Chemical is considering two additives for improving the dry-weather stability of its low- cost acrylic paint. Additive A has a

Engineering Economics Problem.

3. CEMEX Chemical is considering two additives for improving the dry-weather stability of its low- cost acrylic paint. Additive A has a rst cost of $110,000 and an annual operating cost of $60,000. Additive B has a first cost of $175,000 and an annual operating cost of $35,000. If the company uses a 3-year recovery period for paint products and a MARE of 20% per year, which process is economically favored? Use an incremental ROR analysis

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