A carbon-steel reactor costs 10000 and has an estimated

Reference no: EM13571048

A carbon-steel reactor costs $10,000 and has an estimated life of 3 years in corrosive environment. A stainless- steel reactor cost $30,000 and has an estimated life of 10 years in the same corrosive environment. The scrap value of the carbon-steel reactor is $2000 and the scrap value of the stainless-steel reactor is $6000. Using capitalized costs with 10% annual interest and annual compoundind, which reactor should be purchased?

Reference no: EM13571048

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