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You have been requested to recommend one of the mutually exclusive industrial sanitation c

You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. MARR is 18% per year. Assume that not having to re-invest in five year is an added benefit of the Vacuum-led. Use the B-C method.

Gravity-fed

Vacuum-led

Capital investment

$27,200

$38,500

Annual receipts less expenses

$7,000

$7,000

Life in years

5

10

Find the incremental B-C ratio and what system should be selected?

 

Gravity-fed

Vacuum-led

Capital investment

$27,200

$38,500

Annual receipts less expenses

$7,000

$7,000

Life in years

5

10

Dec 04 2019 Read more Less More

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