A battery manufacturing plant has been ordered tocease

Chapter , Problem 5-37

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A battery manufacturing plant has been ordered tocease discharging acidic waste liquids containingmercury into the city sewer system. As a result, thefirm must now adjust the pH and remove the mercuryfrom its waste liquids. Three firms have providedquotations on the necessary equipment. An analysisof the quotations provided the following table ofcosts.AnnualIncomeAnnual fromInstalled Operating Mercury SalvageBidder Cost Cost Recovery ValueFoxhill $ 35,000 $8000 $2000 $20,000InstrumentQuicksilver 40,000 7000 2200 0Almaden 100,000 2000 3500 0If the installation can be expected to last 20 yearsand money is worth 7%, which equipment should bepurchased?

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