Question: You are ovaluating two different pollution control options. A filtration system will cost $1,2 million to install and $50,000 annually. It will have to be

 You are ovaluating two different pollution control options. A filtration system

You are ovaluating two different pollution control options. A filtration system will cost $1,2 million to install and $50,000 annually. It will have to be complotely replacod overy 5 years. A precipitation system will cost $1.7 million to install but only $12,000 per year to operate. The precipitation equipment has an effective operating life of 8 years. The discount rate is 13\%. Calculate the Effective Annual Cost of each option. Which option should we seloct

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