Question: Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to

Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save?

Option	First Cost	O&M Cost/Year	Salvage	Life
1	$15 M	$5 M	$4 M	10 years
2	$20 M	$3 M	$6 M	20 years

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