Question: Which process line should be built for a new chem - ical? The expected market for the chemical is 2 0 years. A 2 0

Which process line should be built for a new chem- ical? The expected market for the chemical is 20 years. A 20% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save?
First
O&M
Cost Cost/year Salvage
Life
A $18M
$5M
$4M
10 years
B
25M
3M
6M
20 years

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