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.

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Definitions:

Job Analysis

The process of studying and collecting information about the content and the human requirements of jobs, as well as the context in which jobs are performed.

Synonyms

Words or phrases that have the same or nearly the same meaning as another word or phrase in the same language.

Pay Inequities

Disparities in compensation among employees that are not based on job performance or qualifications.

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