Which is the best alternative

Reference no: EM13303377

A city has two alternatives for improving its sewage system. Use a 4% cost of money, which is conservative for a municipality.

Option A: Initial cost of $12,000,000; annual operating cost of $155,000; service life of 20 years; salvage value of $2,500,000.

Option B: Initial cost of $6,000,000; annual operating cost of $250,000; service life of 10 years; salvage value of $20,000.

Which is the best alternative?

Reference no: EM13303377

Questions Cloud

How much money do you need to put in a money market fund : How much money do you need to put in a money market fund today earning a nominal 6% a year to fund your literature expenses a) forever and b) for the next 6 years?

Design the pipe to flow capacity and use a mannings n : Determine the diameter (in inches) and velocity (feet per second) of a concrete storm pipe required to carry a peak flowrate of 20 cfs at a slope of 1.0% Design the pipe to flow at 75% capacity and use a Mannings n of 0.013.

Explain the applications of outsourcing in accounting : Describe what outsourcing is and whyits importance is increasing and explain the applications of outsourcing in accounting and their implications on the profitability and quality of information of a company.

How much net energy is absorbed by the atom : An atom (not a hydrogen atom) absorbs a photon whose associated wavelength is 281 nm, How much net energy (in terms of eV) is absorbed by the atom

Which is the best alternative : A city has two alternatives for improving its sewage system. Use a 4% cost of money, which is conservative for a municipality.

Determine the distances the spacecraft must be from earth : consider a spacecraft that is positioned directly between the earth and moon.the mass of the moon's is approximately 7.35 X10^22 kg, and at the instant under consideration, the moon is 3.8 X 10^8 km from earth.

How much money will he have saved at the end of year 3 : Tom is planning to invest the following amount at 4percent interest. how much money will he have saved at the end of year 3?

After how many minutes does the ice start to melt : An open container holds 0.550 kg of ice at - 15.0 degree celsius. The mass of the container can be ignored. After how many minutes does the ice start to melt

Determine the initial weight and final density of the water : A steel tank hold 120 ft^3 of water at atmospheric pressure(14.7psi and 68.4 degrees f). the water is subjected to a 100 fold increase in pressure. determine the initial weight and final density of the water if the volume decreases by .545 ft ^3.

User Account

All Pages