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Question: You have been asked to make a recommendation whether a slurry that needs to be separated should be separated with a centrifuge system or with a rotary vacuum filter. The centrifuge system requires a capital investment of $ 25,000, and has a useful life of 8 years before it needs to be replaced. Its annual operating costs are $ 1,400. The rotary vacuum filter requires a capital investment of $ 15,000 and has a useful life of 5 years before it needs to be replaced by a new one. It costs $ 2,000 per year to operate the vacuum filter.
Your company uses a discount rate of 10%.
a) Determine the capitalized costs of each of the two separation systems.
b) Determine the annualized operating costs of each of the two systems.
c) Recommend which of these two systems should be used.
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Their progress is monitored each year using the California English Language Development test. The results for two school districts in southern California for the 2003 school year are given in the accompanying table.7 Do the data indicate a signifi..
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