Question: n environmental engineer must recommend one of two methods for monitoring high colony counts of E . coli and other bacteria in watershed area hot

n environmental engineer must recommend one of two methods for monitoring high
colony counts of E. coli and other bacteria in watershed area hot spots. Estimates are
tabulated, and the MARR is 10% per year. Use the ROR analysis to select the better
method
Method A Method B
Initial cost, $ -100,000-300,000
Annual operation cost ($ per
year)
-30,000 in year 1, cost
increase by 5,000 each year
till end of lifetime
-20,000
Life, years 816
Incremental ROR=12.87%, choose method B

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