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

The total entropy change, The similar system is now heated in two stages, ...

The similar system is now heated in two stages, by rst contacting with a reservoir at T2 halfway among T1 and Tf , then by contacting with the reservoir at Tf . Again and the ent

using the steam tables, A insulated vessel is divided by a partition into ...

A insulated vessel is divided by a partition into two parts. Initially, the left side contains steam at 300C, 20 bar, and the right side is evacuated. Then, the partition is sudden

Describe electric susceptibility, Electric susceptibility The electric ...

Electric susceptibility The electric susceptibility χ e of a dielectric material is a calculate of how easily it polarizes in response to an electric field. This, in turn, ver

Titration, tell me everything about titration

tell me everything about titration

Water softening, What is phosphate conditioning in water softening?

What is phosphate conditioning in water softening?

Electron configuration, Q1 What is wrong with each of the following attempt...

Q1 What is wrong with each of the following attempts to write an electron configuration? Justify your answer with suitable explanation. (a) 1s22s3 (b) 1s22s22p23s2 (c) 1s22s23s2 (d

Classification of chemicals in the store, CLASSIFICATION OF CHEMICALS IN TH...

CLASSIFICATION OF CHEMICALS IN THE STORE Your Counsellor will give you names of any five chemicals. You fill up the report in tabular form (Table) indicating the name of the ch

Outdoor facilities-features of a laboratory, Outdoor facilities, if any ...

Outdoor facilities, if any For biology lab there may be an animal house, green house, garden plots, aquarium, a vivarium etc. Also find out how they are connected with the main

Explain ion implantation, Ion implantation equipment typically having of a...

Ion implantation equipment typically having of an ion source, where ions of the desired element are produced, an accelerator, where the ions are electrostatically accelerated to a

Cloud and pour point of lubricant, Q.   Write short notes on cloud and pour...

Q.   Write short notes on cloud and pour point of lubricant. Ans. Cloud and pour point of lubricant: When the temperature is lowered up to a particular point, the oil becomes

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