As a mine engineer you were asked to design the mine water treatment plant system. After several considerations you concluded with two possible designs AM and BM. The cash flows for these two systems...


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As a mine engineer you were asked to design the mine water treatment plant system. After<br>several considerations you concluded with two possible designs AM and BM. The cash flows for<br>these two systems are provided in following table.<br>AM<br>BM<br>FIRST COST, $<br>ANNUAL COST, $ PER YEAR<br>SALVAGE VALUE, $<br>LIFE, YEARS<br>-51,000<br>-3,500<br>11,000<br>-33,000<br>-8,000<br>4,000<br>3<br>6<br>Use the EAC method that we discussed in class and determine which design system should be<br>selected. Use the interest rate of return of 10% per year.<br>

Extracted text: As a mine engineer you were asked to design the mine water treatment plant system. After several considerations you concluded with two possible designs AM and BM. The cash flows for these two systems are provided in following table. AM BM FIRST COST, $ ANNUAL COST, $ PER YEAR SALVAGE VALUE, $ LIFE, YEARS -51,000 -3,500 11,000 -33,000 -8,000 4,000 3 6 Use the EAC method that we discussed in class and determine which design system should be selected. Use the interest rate of return of 10% per year.

Jun 10, 2022
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