question archive Groundwater well is known to begin pumping sand once it becomes exploited (old), and this may damage the subsequent water treatment processes
Groundwater well is known to begin pumping sand once it becomes exploited (old), and this may damage the subsequent water treatment processes
Subject:BusinessPrice: Bought3
Groundwater well is known to begin pumping sand once it becomes exploited (old), and this may damage the subsequent water treatment processes. To solve this problem, two alternatives are proposed: A new well can be drilled at a capital cost of $580,000 with minimal operating and maintenance expenses of $11,500 per year. A settling tank can be constructed ahead of the treatment processes which will cost $230,000 to build and $42,400 per year to operate and maintain. The salvage value of either option at EOY 20 is 10% of the capital investment. Using a MARR of 5% (a) Which alternative is better for the 20-year study period? (b) Use a spreadsheet solver to determine a study period that will make the two alternatives equally acceptable (it is okay if the number of years is not an integer, you can also use a trial and error process followed by interpolations. However, the spreadsheet would be easier and will save time [Spreadsheet answer would be preferable]).
