Below is a sample solution in case it helps thank you! Problem 7-37...
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Problem 7-37 (algorithmic) Show Work | -Question Help An industrial coal-fired boiler for process steam is equipped with a 10-year-old electrostatic precipitator (ESP). Changes in coal quality have caused stack emissions to be in noncompliance with federal standards for particulates. Two mutually exclusive alternatives have been proposed to rectify this problem (doing nothing is not an option). New Baghouse New ESP Capital investment Annual operatingexpenses $1,171,500 $975,000 77,200 105,000 The life of both alternatives is 9 years, the effective income tax rate is 24%, and the after-tax MARR is 9% per year. Both alternatives qualify as seven-year MACRS (GDS) properties. Make a recommendation regarding which alternative to select based on an after-tax analysis. Click the icon to view the GDS Recovery Rates() for the 7-year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. Calculate the PW value for the new baghouse PWBaghouse (9%) $1 million (Round to three decimal places.)
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