Question: You have been asked to evaluate 2 pollution control devices. The wet scrub costs $100 to set up and $50 per year to operate. It
You have been asked to evaluate 2 pollution control devices. The wet scrub costs $100 to set up and $50 per year to operate. It must be completely replaced every 3 years, and it has no salvage value. The dry scrub device costs $200 to set up and $30 per year to operate. It lasts for 5 years and has no salvage value. Assuming that pollution control equipment is replaced as it wears out, which device do you recommend if the cost of capital is 10% ? a. Dry scrub, the EAC is $11.00. b. Dry scrub, the EAC is $82.76. c. Wet scrub, the EAC is $90.21. d. Wet scrub, the EAC is $9.79
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