Question: solve these problems:- A pulp and paper company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it
solve these problems:-





A pulp and paper company is evaluating whether it should retain the current bleaching process that uses chlorine dioxide or replace it with a proprie- tary "oxypure" process. The relevant information for each process is shown, Use an interest rate of 13% per year to perform the replacement study Current Process Oxypure Process Original cost 6 -450,000 years ago, 5 Investment cost -700,00D now, $ Current market 35 000 value, $ Annual operating - INI,OOD -7070OD Sahage value, $ 50,DOD Remaining life, YearsAn engineer with Haliburton calculated the AW values shown for a presently owned machine by using estimates be obtained from the vendor and company records. Retention AW Value. Period, Years 5 per Year -RI, OOD -87,DOD -890OD -95,000 A challenger has an economic service life of 7 years with an AW of $ 86,000 per year. Assume that used machines like the one presently owned will always be available and that the MARR is 12%% per year. If all future costs remain as esti- mated for the analysis, the company should pur- chase the challenger: [a) Now (b) After 2 years [o) After 3 years () Never\f\f\f
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