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Business, 19.03.2021 18:30 EthanIsHyper

Some estimates have been presented to Charlene, the Director of Operations (DO) at Holly Farms, which is considering alternative environmental chambers for a project that will detail laboratory confirmations of online bacteria tests in chicken meat for the presence of E. coli 0157:H7 and Listeria monocytogenes. Chamber D103 Chamber 490G
Installed cost, $ -400,000 -250,000
Annual operating cost, $ per year -4000 -3000
Salvage value at 10% of P, S 40000 25,000
Life, years 3 2

Required:
a. If this project will last for 6 years and i 10% per year, perform an AW method evaluation to determine which chamber is more economical.
b. Chamber D103 can be purchased with different options and, therefore, at different installed costs. They range from$300,000 to $500,000. Will the selection change if one of these other models is installed?

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