replacement of equipment, Chemical Engineering

Assignment Help:
A company is using a piece of equipment which originally cost $30,000. The equipment has been in use for 5 years, and now has a net realizable value of $6000. At the time of installation, the service life was estimated to be 10 years and zero salvage value at the end .Operating costs amount to $22,000/year. At the present time, the remaining service life of the equipment to be 3 years.
A proposal has been made to replace the present piece of property by one more advanced design. The proposed equipment would cost $ 40,000, and the operating costs would be $ 15,000 per year. The service life is estimated to be 10 years with a zero salvage value. Each piece of equipment will perform the same service and all costs other than those for operation and depreciation will remain constant. The company requires an annual return of at least 10 percent. Should the present equipment be replaced? (straight line depreciation is applicable)

Related Discussions:- replacement of equipment

Process engineering, 1. Select a process variable (pressure / temperat...

1. Select a process variable (pressure / temperature / level / flow) and conduct a literature survey to determine recent developments in process instrumentation field. Ide

Explain antiferromagnetic materials, Explain Antiferromagnetic materials ...

Explain Antiferromagnetic materials Antiferromagnetic materials are the materials in which almost every magnetic dipole is linked up ant parallel to each other. Its susceptib

Preparation of comparative chart, PREPARATION OF COMPARATIVE CHART You ...

PREPARATION OF COMPARATIVE CHART You are given three envelopes containing quotations from three firms for two items. You will prepare a comparative chart in the format given be

Internal conditioning of water, describe briefly any four internal conditio...

describe briefly any four internal conditioning methods

Explain the process of extrusion, Explain the process of extrusion In t...

Explain the process of extrusion In this process a round heated billet of metal placed in a container is forced out by a die in a press. This process is commonly used for manuf

The probability of occupation of an energy level e, The probability of occu...

The probability of occupation of an energy level E, when E - E F = kT, is given by 0.27

Calculate the pressure and composition of the vapor phase, For the binary s...

For the binary system 2, 4-dimethylpentane (1) + benzene (2) the excess Gibbs energy of the liquid phase is given by: G E /(x 1 x 2 ) = (A 12 x 1 + A 21 x 2 ) a. Calculate t

Dynamics, kenematics of rigid body in rotation

kenematics of rigid body in rotation

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd