Which system would you select


Problem

1. You have been requested to recommend one of the mutually exclusive industrial sanitation control systems that are given below. If MARR is 15% per year, which system would you select? Use the B-C method.

      Alternative

Gravity-fed                         Vacuum-led

Capital investment                          $24,500                                $37,900

Annual receipts                                 8,000                                     8,000

less expenses Life in years            5                                             10

2. A flood control project with a life of 16 years will require an investment of $60,000 and annual maintenance costs of $5,000. The project will provide no benefits for the first two years but will save $24,000 per year in flood damage starting in the third year. The appropriate MARR is 12% per year.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Which system would you select
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