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

Conductivity of a conductor, In what important respect does the conductivit...

In what important respect does the conductivity of a conductor differ from that of an intrinsic Semiconductor.           It is well known that the conductivity of a conductor i

iron-carbon alloy , It is desired to generate an iron-carbon alloy that ha...

It is desired to generate an iron-carbon alloy that has a minimum hardness of 200 HB and a minimum ductility of 35%RA. Is such an alloy possible? If so, what will be its compositio

Procedure for purchase of alcohol and its stock maintenance, First find out...

First find out the requirement of alcohol for your lab in consultation with the teacher or from records of previous years. Then fill-up F-22 form or simply write an application for

Granulation, how can we improve crushing strength of 20:20

how can we improve crushing strength of 20:20

Water technology, problems of scales and sludge formation

problems of scales and sludge formation

Basic principle, Blending is an important unit operation in the chemical an...

Blending is an important unit operation in the chemical and process industries. It is employed in a wide variety of industries including the production of cement and gasoline. Con

learn the handling of hazardous chemicals-fume cupboard, Activity to Learn...

Activity to Learn The Handling Of Hazardous Chemicals: Use Of Fume Cupboard Previous you learn about the importance of fume cupboard and its usage. There are many chemicals whi

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