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

Material and energy balances, Wet air containing 4.0 mole% water vapor at 7...

Wet air containing 4.0 mole% water vapor at 76°F and 14.8 psia is passed through a column of calcium chloride pellets. The pellets absorb 97% of the water and none of the other con

Refractoriness under load (rul), Refractoriness under load (RUL): This rep...

Refractoriness under load (RUL): This represents the resistance of a refractory material to the combined efforts of heat and load. RUL is the temperature at which the deformation

Chemical processing calculation.., in the combustion of heptane in oxygen C...

in the combustion of heptane in oxygen CO2 was produced.if 500kg of dry ice was produced of which 50% of the CO2 was converted to dry ice,what is the amount of heptane needed to bu

Formox Process, Hi, my name is Luan Sousa, i am from Brazil and i am a chem...

Hi, my name is Luan Sousa, i am from Brazil and i am a chemical engineering student. I am developing a project of formox plant design and i would like to know about yields of conve

Ckb, bj45th5httit9r00000001555599

bj45th5httit9r00000001555599

Feasibility survey report of Dimethyl ether, Why do we need to produce of D...

Why do we need to produce of Dimethyl ether? Today''s and future demands and supplies...Who are the consumers? (Consumer from industry and consumer''s habit).Safety precautions of

Phase rule, complete phase rule assignment

complete phase rule assignment

Electrolysis, Could I get a code on designing electrolytic reactors in the ...

Could I get a code on designing electrolytic reactors in the production of sodium ?

Emf, define emf and its application

define emf and its application

Mass and partial energy balance, Mass and Partial Energy Balance The p...

Mass and Partial Energy Balance The process flow diagram attached shows a very simplified approach to the production of Potash from Sylvinite ore. Conduct a mass balance and a

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