Answer Happy

An oil refinery finds that it is necessary to treat the waste lquids from a new process before discharging them into a stream. The treatment will cost $20,000 the first year, but process improvements will allow the costs to decine by $2,000 each year. As an alternative, an outside company will process the wastes for the fixed price of $10,000/year throughout the 8 year period, payable at the beginning of each year, Either way, there is no need to treat the wastes atter 8 years. Use the annual worth method to determine how the wastes should be processed. The company's MARR is 9% Click the icon to view the interest and annuity table for discrete compounding when the MARR is 9% per year. The AW of the in-house treatment is $ (Round to the nearest dolar.)