Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 5

A chemical processing corporation is considering three methods to dispose of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are shown. Determine which has the least cost on the basis of a present worth comparison at 10% per year for the following scenarios:
(a) The estimates as shown
b)The contract award cost increases by 20% every 2-year renewal