A solid-waste recycling plant is considering two types of storage bins using an MARR of 10% per year. (a) Use ROR evaluation to determine which should be selected. (b) Confirm the selection using the...

A solid-waste recycling plant is considering two

types of storage bins using an MARR of 10% per

year. (a) Use ROR evaluation to determine which

should be selected. (b) Confirm the selection using

the regular AW method at MARR = 10% per year.

Storage Bin P Q

First cost, $ −18,000 −35,000

AOC, $ per year −4000 −3600

Salvage value, $ 1000 2700

Life, years 3 6