Should the plant purchase the new aeration system

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A small wastewater treatment plant is using a subsurface are ration system for his sludge aeration. The operational cost for this system $477 a year.The plant is considering purchasing a new system that cost $1400 with an operational cost of $239 a year.

1-Find the time to recover the investment, assuming zero percent interest.

2-Should the plant purchase the new aeration system? Discuss.

3-Find the time to recover the investment, assuming 5.5% interest, financed over 3 years, monthly payments, and discuss.

Reference no: EM131523312


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