A large utility company is considering two mutually exclusive methods for storing its coal combustion...
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A large utility company is considering two mutually exclusive methods for storing its coal combustion by products. One method is wet storage and the second method is dry storage. The company must adopt one of those two methods for all 28 of its ash and gypsum impoundments at seven coal-fired power plants. Wet storage requires an initial investment of $2 billion, followed by annual maintenance expenses of $400 million over a 9-year period of time. Dry storage has a $2.5 billion capital investment and $200 million per year upkeep expenses over its 6 -year life. If the company's MARR is 5% per year, which method should be adopted? (assume repeatability) The equivalent uniform annual cost for the wet storage is $ Bo 1 million. (round to one decimal place.) The equivalent uniform annual cost for the dry storage is $Bos2 million.(round to one decimal place.) Bc
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