Question #2 (40 Points): An environmental engineer wants to evaluate three different methods for disposing of a non- hazardous chemical waste: land application, fluidized-bed incineration, and private disposal contract. The estimates are as follows: Land Incineration Contract First Cost -150,000 -900,000 0 Annual Operating Cost -95,000 -60,000 -140,000 Life 4 6 Salvage Value at end of any year 25,000 300,000 Using an interest rate of 15%, determine the best alternative by: a) Using the PW Analysis with an infinite planning horizon. (16 Points) b) Using the PW Analysis with an 10-year study period. (14 points) c) Using the AW Analysis considering the useful life of each alternative. Comment on the results. (10 Points) 2 0 Question #2 (40 Points): An environmental engineer wants to evaluate three different methods for disposing of a non- hazardous chemical waste: land application, fluidized-bed incineration, and private disposal contract. The estimates are as follows: Land Incineration Contract First Cost -150,000 -900,000 0 Annual Operating Cost -95,000 -60,000 -140,000 Life 4 6 Salvage Value at end of any year 25,000 300,000 Using an interest rate of 15%, determine the best alternative by: a) Using the PW Analysis with an infinite planning horizon. (16 Points) b) Using the PW Analysis with an 10-year study period. (14 points) c) Using the AW Analysis considering the useful life of each alternative. Comment on the results. (10 Points) 2 0