A metal plating company is considering four different methods for recovering by-product heavy metals from a manufacturing site’s liquid waste. The investment costs and annual net incomes associated with each method have been estimated. All methods have an 8-year life; the MARR is 11% per year; and an AW-based ROR analysis is required. (a) If the methods are independent (because they can be implemented at different plants), which ones are acceptable? (b) If the methods are mutually exclusive, determine which one should be selected. Method First Cost, $ Salvage Value, $ Annual Net Income, $/Year A −30,000 +1,000 +4,000 B −36,000 +2,000 +5,000 C −41,000 +500 +8,000 D −53,000 −2000 +10,500
A metal plating company is considering four different
methods for recovering by-product heavy metals
from a manufacturing site’s liquid waste. The
investment costs and annual net incomes associated
with each method have been estimated. All methods
have an 8-year life; the MARR is 11% per year;
and an AW-based ROR analysis is required. (a) If
the methods are independent (because they can be
implemented at different plants), which ones are
acceptable? (b) If the methods are mutually exclusive,
determine which one should be selected.
Method
First
Cost, $
Salvage
Value, $
Annual Net
Income, $/Year
A −30,000 +1,000 +4,000
B −36,000 +2,000 +5,000
C −41,000 +500 +8,000
D −53,000 −2000 +10,500
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