4. A semiconductor manufacturer has been ordered by the city to stop discharging untreated, acidic waste liquids into the city sewer system. Your analysis shows you could select any one of the three systems that can treat the waste of the said establishment. System Doxhill Slowsilver Evergreen Installed Cost P1,500,000 P1,750,00 P4,000,000 Annual Operating Cost P300,000 P250,000 P50,000 Salvage Value at End of 20 Years P100,000 P250,000 P2,000,000 If the system is expected to last and be used 20 years and money is worth 8%, which system should be purchased? Use FW method.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 8SQP
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4. A semiconductor manufacturer has been ordered by the city to stop discharging untreated, acidic waste liquids
into the city sewer system. Your analysis shows you could select any one of the three systems that can treat the
waste of the said establishment.
System
Doxhill
Slowsilver
Evergreen
Installed Cost
P1,500,000
P1,750,00
P4,000,000
Annual Operating Cost
P300,000
P250,000
P50,000
Salvage Value at End of
20 Years
P100,000
P250,000
P2,000,000
If the system is expected to last and be used 20 years and money is worth 8%, which system should be purchased?
Use FW method.
Transcribed Image Text:4. A semiconductor manufacturer has been ordered by the city to stop discharging untreated, acidic waste liquids into the city sewer system. Your analysis shows you could select any one of the three systems that can treat the waste of the said establishment. System Doxhill Slowsilver Evergreen Installed Cost P1,500,000 P1,750,00 P4,000,000 Annual Operating Cost P300,000 P250,000 P50,000 Salvage Value at End of 20 Years P100,000 P250,000 P2,000,000 If the system is expected to last and be used 20 years and money is worth 8%, which system should be purchased? Use FW method.
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