Question

An environmental engineer is considering 3 methods for disposing of non-hazardous chemical sludge. The methods are Land Application, Fluidized-bed Incineration, and Private Disposal Contract. The estimated cash flows associated with each option are listed in the table below. Using the annual worth method and a 12% per year interest rate, determine the least cost option.

Please only attempt if you are sure about the answer.

Do not copy from Chegg.

	Land Application	Incinerator	Contract
1st Cost	$110,000	$800,000	$0
Annual Cost	$95,000	$60,000	$190,000
Salvage Value	$15,000	$250,000	$0
Life Span	3 yrs	6 yrs	2yrs

Answer 1