You have been asked to evaluate 2 pollution control devices. The viet scrub costs $100 to set up and $50 Tim 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 method do you recommend the cost of capital is 10 percent?

Answer rating: 100% (QA)

To determine which pollution control device is more cost effective we ll calculate the Present Value View the full answer