Compare the following alternatives on the basis of their capitalized cost at an interest rate of 10% per year.
Petroleum Based Feedstock
First cost, $ -250000
Annual operating cost, $/year -130000
Annual revenues, $/year 400,000
Salvage value, $ 50,000
Life,years 6
Inorganic-Based Feedstock
First cost, $ -110,000
Annual operating cost, $/year -65,000
Annual revenues, $/year 270,000
Salvage value, $ 20,000
Life, years 4
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Is there some reason you can't put this on a spreadsheet and evaluate?
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