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(Solved): All power plants must invest in one of four alternative pollution control technologies to reduce em ...
All power plants must invest in one of four alternative pollution control technologies to reduce emissions. As the manager of one plant, you are deciding which one is the most cost-effective for you (i.e., cheapest). You are given the following information: Each technology has a total life of three years. The installation cost occurs at the beginning of the first year. The operating costs are paid at the end of each year. Technologies C and D can be salvaged at the end of their life and earn 1000 and 1500 in scrap value, respectively. Technology A has a failure/repair rate of 50% during the first 12 months following installation. Answer using 1-2 paragraphs and explain which solution you would choose and why?