You have been asked to evaluate 2 pollution control devices. The wet scrub costs $100 to...
You have been asked to evaluate 2 pollution control devices. The wet scrub costs $100 to set up and $50 per year to operate. It must be completely replaced every 3 years, and it has no salvage value. The dry scrub device costs $200 to set up and $30 per year to operate. It lasts for 5 years and has no salvage value. Which control device you recommend if the cost of capital is 10%?
Select one:
a. Dry scrub, the EAC is $ 11.00.
b. Wet scrub, the EAC is $ 90.21.
c. Dry scrub, the EAC is $ 82.76.
d. Wet scrub, the EAC is $ 9.79.
e. None of the above
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