A chemical engineer is determining the most economical alternative by comparing three alternatives, as well as the do nothing alternative, for a new chemical process. He investigates the costs and the...

Extracted text: A chemical engineer is determining the most economical alternative by comparing three alternatives, as well as the do nothing alternative, for a new chemical process. He investigates the costs and the benefits for each of the alternatives and determines the net present worth of each alternative using a minimum attractive rate of return of 10%. All of the altematives will have a life span of 20 years. The three potential alternatives being analyzed are listed in the table and figures are the cash flow diagrams for the potential chemical processes. Chemical Engincering Process Alternatives Uniform Not Torminal Valuo at the Alternative Total Investment Annual Benefit End of 20 Years $500,000.00 Chemical process I Chemical process 2 Chemical process 3 Do nothing 551,000.00 S300,000.00 $950,000.00 $105,000.00 $300,000.00 $1,500,000.00 S150,000.00 $400,000.00