Question: Which process line should be built for a new chemical? the expected market for the chemical is 16 years. an 18% rate is used to

Which process line should be built for a new chemical? the expected market for the chemical is 16 years. an 18% rate is used to evaluate new process facilities, which are compared with present worth. how much does the better choice save?

	First cost	O &M cost/year	salvage	life
A	$14 M	$2.5 M	$2 M	8 years
B	22 M	3 M	7.5 M	16 years

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Present worth PW of A 14M 35M PIA 18 1 PW A Pw of B 14M2M PF 18 8 2... View full answer

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