A waste-holding lagoon situated near the main plant of a chemical company receives sludge on a daily basis. When the lagoon is full, it is necessary to remove the sludge to a site located 4.95 kilometers from the main plant. Currently, when the lagoon is full, the sludge is removed by pumping it into a tank truck and hauling it away. This process requires the use of a portable pump that has an initial cost of $800 and an 8-year life. The com-pany can operate the pump at a cost of $25 per day, but the truck and driver cost $110 per day. Alternatively, the company has a proposal to install a pump and pipeline to the remote site. The pump would have an initial cost of $600, a life of 10 years, and a cost of $3 per day to operate. (a) If the MARR is 15% per year and the pipeline will cost $3.52 per meter to construct, how many days per year must the lagoon require pumping to jus- tify construction of the pipeline?
(b) The lagoon was pumped 40 times last year. Which alternative would have been cheaper?