You Have Been Asked to Evaluate 2 Pollution Control Devices

question 11

Multiple Choice

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. Assuming that pollution control equipment is replaced as it wears out, which method do you recommend if the cost of capital is 10%?

• 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) Dry scrub, the EAC is $124.34.

Identify and explain various ADR processes such as mediation, arbitration, and negotiation.

Distinguish between binding and non-binding ADR processes.

Recognize the role and authority of an arbitrator in the arbitration process.

Understand the enforceability of arbitration agreements under the Federal Arbitration Act (FAA).

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Definitions:

Contributory Plan

A type of insurance plan or pension scheme where both the employer and the employee contribute towards the cost of the benefits.

Salary

Fixed regular payment, typically expressed on an annual basis, made by an employer to an employee, especially a professional.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Pregnancy Discrimination Act

A United States federal law that prohibits discrimination on the basis of pregnancy, childbirth, or related medical conditions in any aspect of employment.