A community has been mandated to reduce by 75% the amount of solid and chemical...
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A community has been mandated to reduce by 75% the amount of solid and chemical waste effluent discharged from its sewage treatment plant into a small river. Three companies have bid on systems to modify the plant. Each system is expected to last for the remaining life of the plant, 15 years. Initial cost, and annual plant operation and maintenance costs for each of the three bids are: Bid A Bid B Bid C Initial Cost $125,000 $160,000 $190,000 Annual O&M $15,000 $12,000 $9,200 If bid A is accepted, a certain addition to the discharge ducts will have to be built at a cost of $25,000 (not included in the $125,000), which will have to be replaced at 5 year intervals. Assuming an interest rate of 9%, which is the lowest cost bid? EUAC of A EUAC of B Choose... $36,941 $32,779 $31,857 EUAC of C V UJC
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