ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Engineering Econ HW5 Q1
Transcribed Image Text:Fall 2024
1. A battery manufacturing plant has been ordered to cease discharging acidic waste liquids
containing mercury into the city sewer system. As a result, the firm must now adjust the pH and
remove the mercury from its waste liquids. Quotations from three firms are included in the
following table of costs. If the installation will last 15 years and money is worth 12%, which
equipment should be purchased?
Bidder
Installed
Annual
Annual Income from
Salvage
Cost
Operating Cost
Mercury Recovery
Value
Foxhill
$50k
5k
6.5k
10k
Quicksilver $40k
5k
2.5k
0
Almaden
$80k
5k
7.8k
10k
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