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university of southern california Operations And Supply Chain Management Assignment Help - paper mill


Question - A paper mill is considering two types of pollution control equipment. Neutralization Precipitation Initial cost $700,000 $500,000 Annual chemical cost 40,000 110,000 Salvage value 175,000 125,000 Useful life, 5 5 In years The firm wants a 12% rate of return on any avoidable increments of investment. Which equipment should be purchased?

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