Determine what is minimum salvage value

Reference no: EM13192337

A new chemical remediation tank is needed. Current technology tanks, which costs $150,000, MUST BE DRAINED AND TREATED EVERY TWO YEARS AT A COST OF $30,000; THE TANKS WILL LAST TEN YEARS, AND EACH WILL HAVE A SALVAGE VALUE OF 5%. OF FIRST COST. A TANK WITH NEW TECHNOLOGY HAS JUST COME TO MARKET. THERE ARE NO PERIODIC MAINTENANCE, AND A TANK WILL LAST 20 YEARS. IF THE NEW TANKS COST$325,000, WHAT MINIMUM SALVAGE VALUE, AS A PERCENTAGE OF FIRST COST, WOULD BE REQUIRED FOR THIS TECHNOLOGY TO BE A BETTER OPTION?

Reference no: EM13192337

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