A paper mill is considering two types of pollutioncontrol

Chapter , Problem 8-7

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A paper mill is considering two types of pollutioncontrol equipment.Neutralization PrecipitationInitial cost$700,000 $500,000Annual chemical cost 40,000 110,000Salvage value175,000 125,000Useful life, in years5 a)Construct a choice table for interest rates from0% to 100%.(b)The firm wants a 12%rate of return on any avoid-able increments of investment. Which equipmentshould be purchased

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