Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 36

A consulting engineer is considering two methods for lining ponds used for evaporating concentrate generated during reverse osmosis treatment of brackish groundwater for the Clay County Industrial Park. A geosynthetic bentonite clay liner (GCL) will cost $1.8 million to install, and if it is renovated after 4 years at a cost of $375,000, its life can be extended another 2 years. Alternatively, a high-density polyethylene (HDPE) geomembrane can be installed that will have a useful life of 12 years. At an interest rate of 6% per year, how much money can be spent on the HDPE liner for the two methods to break even