Discharged from vegetable packing plant

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Reference no: EM131987621

Pollution control equipment must be purchased to remove the suspended organic material from liquid being discharged from a vegetable packing plant. Two alternative pieces of equipment are available that would accomplish the task. A Filterco unit costs $7000 and has a 5-year useful life. A Duro unit, on the other hand, costs $10,000 but will have a 10-year useful life. With inflation, equipment costs are rising at 5% per year, compounded annually, so when the Filterco unit needed to be replaced, the cost would be much more than $7000. Based on a 10-year analysis period, and a 20% minimum attractive rate of return, which pollution control equipment should be purchased? You are required to write LaTeX: \Delta ROR Δ R O R as a percentage.

Reference no: EM131987621

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