CHEE 5369/6369 Quiz # 8 (Closed book) Tuesday March 11,2008 A waste-holding lagoon situated near the main plant receives sludge daily. When the lagoon is full, it is necessary to remove the sludge to a site located 8.2 kilometers from the main plant. Currently, when the lagoon is full, the sludge is removed by pump into a tank truck and hauled away. This process takes a full day to complete and it requires the use of a portable pump that initially cost $800 and has an ~ J : : ea. r life. The company pays a contract individual to operate the pump and over-see environmental and safety factors at a rate of $100 per day, but the truck and driver must be rented for $200 per day. . The company has the option to install a pump and pipeline to the remote site. The pump would have an initial cl ?!~ ...2 ! . ~~ . ..Q and a l! ! e of 10 ,Ye ! lrsand will cost $3 per ~y to Q erate. The company's MARR is ! Q ! 2 ~ . p . ! r _ x , ~~ ~-. / a) If the pipeline will cost $12 per meter to construct and will have a H)-year
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