The complete failure of an offshore platform and the resulting spillage of up to 800,000 to 1,000,000 gallons per day into the Gulf of Mexico in the spring of 2010 have made major oil producers and transporters very conscious of the harm done to people's livelihood and all forms of aquatic life by spills of this magnitude. To address the specifi c danger to birds that are shoreline feeders and dwellers, environmental engineers from several international petroleum corporations and transport companies-Exxon-Mobil, BP, Shell, and some transporters for OPEC producers- have developed a plan to strategically locate throughout the world newly developed equipment that is substantially more effective than manual procedures in cleaning crude oil residue from bird feathers. The Sierra Club, Greenpeace, and other international environmental interest groups are in favor of the initiative. Alternative machines from manufacturers in Asia, America, Europe, and Africa are available with the cost estimates in Table 8-7. Annual cost estimates are expected to be high to ensure readiness at any time. The company representatives have agreed to use the average of the corporate MARR values, which results in MARR _ 13.5%. Use a spreadsheet and incremental ROR analysis to determine which manufacturer offers the best economic choice.
|
|
Machine 1
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Machine 2
|
Machine 3
|
Machine 4
|
|
First cost, $
|
-5,000
|
-6,500
|
-10,000
|
-15,000
|
|
Annual operating cost, $
|
-3,500
|
-3,200
|
-3,000
|
-1,400
|
|
Salvage value, $
|
500
|
900
|
700
|
1,000
|
|
Life, years
|
8
|
8
|
8
|
8
|