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

What do you understand by wet bulb globe temperature, What do you understan...

What do you understand by Wet bulb Globe temperature? Wet bulb globe temperature index is used to measure the sultriness of environment. Sultriness is calculated on the basis o

Ro, what is the feed flow for a single memebrane

what is the feed flow for a single memebrane

The pressure drops, 30,000 lb/hr of combination whose average properties co...

30,000 lb/hr of combination whose average properties correspond to hexane is vaporized from 40,000 lb/hr of feed at its bubble point at 105 psig. The boiling range is from 300 to 3

Composition of the product gas, Finish the molecular species balance proble...

Finish the molecular species balance problem I started in class, i.e. find the composition of the product gas.

Placement of order with the firm , PLACEMENT OF ORDER WITH THE FIRM FOR THE...

PLACEMENT OF ORDER WITH THE FIRM FOR THE SUPPLY OF GOODS A format of an order form is given below. You are required to fill it for the supply of the following equipments from

What is dielectric strength, What is dielectric strength? Dielectric st...

What is dielectric strength? Dielectric strength: It is the high voltage / field gradient (voltage per unit thickness) which the dielectric can withstand without failure / brea

Explain the mechanism of ferromagnetism, Explain the mechanism of ferromagn...

Explain the mechanism of ferromagnetism Ferromagnetism is the basic mechanism by which certain materials (like iron) form permanent magnets and/or exhibit tough interactions

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