Question: om 3: 20 marks e n to install you are evaluating two different pollution control options. A filtration system will cost 1.1 million to insu

om 3: 20 marks e n to install you are evaluating two different pollution control options. A filtration system will cost 1.1 million to insu und 60,000 annually. It will have to be completely replaced every 5 years. A precipitation system 1.9 million to install but only 10,000 per year to operate. The precipitation equipment has operating life of 8 years. The discount rate is 12%. Calculate the Effective Annual Cost of each option. Which option should we select

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