Answer:
Explanation:
The annual worth of land application = $ 110,000 ( A/P , 10% , 5 years ) + $ 95,000 - $ 15,000 (A/F , 10% , 5 years )
The annual worth of land application = $ 110,000 X 0.263797 + $ 95,000 - $ 15,000 X 0.163797
The annual worth of land application = $ 29,017.54 + $ 95,000 - $ 2,456.95
The annual worth of land application = $ 121,560.59
The annual worth of land Incineration = $ 800,000 ( A/P , 10% , 6 years ) + $ 60,000 - $ 250,000 X (A/F , 10% , 6 years )
The annual worth of land Incineration = $ 800,000 X 0.229607 + $ 60,000 - $ 250,000 X 0.129607
The annual worth of land Incineration = $ 211,283.85
The annual worth of contract = $ 190,000
The annual worth of contract = $ 190,000
The land application has the least cost , hence it is preferred .
