Business, 24.03.2021 16:40 flowergirly34

An environmental consultant is considering the installation of a water storage tank for a client. The tank is estimated to have an initial cost of $309,000, and annual maintenance costs are estimated to be $7,100 per year. As an alternative, a holding pond can be provided a short distance away at an initial cost of $225,000 for the pond plus $90,000 for pumps and piping. Annual operating and maintenance costs for the pumps and holding pond are estimated to be $16,000. The planning horizon is 20 years, and at that time, neither alternative has any salvage value. Required:
Determine the preferred alternative based on a present worth analysis with a MARR of 20 percent/year.

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An environmental consultant is considering the installation of a water storage tank for a client. Th...