Reference no: EM133121254

Cleanville Environmental Services is evaluating two alternative methods for the disposing of municipal waste. The first involves developing a landfill site near the city. Costs of the site include ?$1,000,000 start-up costs, $100,000 closedown costs 30 years from? now, and operating costs of $20,000 per year. Starting in 10 years, it is expected that there will be revenues from user fees of $30,000 per year. The alternative is to ship the waste out of the region. An area firm will agree to a? long-term contract to dispose of the waste for $130,000 per year. Using the annual worth methodwhich alternative is economically preferred for a MARR of 11 percent?