Problem
Your plant must add another boiler to its steam generating system. Bids have been obtained from two boiler manufacturers as follows:
Boiler A Boiler B
Capital investment $50,000 $100,000
Useful life, N 20 years 40 years
Market value at $10,000 $20,000
EOY N
Annual operating $9,000 $3,000, increasing costs
$100 per year after the first year
If the MARR is 10% per year, which boiler would you recommend? Use the repeatability assumption.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.