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Estimates have been presented to Holly Farms which is considering two environmental chambers for a project that will detail laboratory confirma- tions of on-line bacteria tests in chicken meat for

Estimates have been presented to Holly Farms, which is considering two environmental chambers for a project that will detail laboratory confirma- tions of on-line bacteria tests in chicken meat for of E coli 0157:H7 and Listeriamono- cytogenes. (a) If the project will last for 6 years and 1-10% per year, perform an AW evaluation to determine which chamber is more economical (b) Chamber D103 can be purchased with differ- ent options and, therefore, at different installed costs. They range from $300,000 to $500,000. Will the selection change if one of these other models is installed? (c) Use single-cell spread- sheet functions to solve part (b). the presence Chamber D103 Chamber 490G Installed cost, S -400,000 -250,000 Annual operating cost $ per year Salvage value at 10% of P, $ -4000 -3000 40,000 25,000 Life, years

Apr 20 2020 View more View Less

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