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

High speed of reading and storing the information''s, For high speed of rea...

For high speed of reading and storing the information's in a computer, the use is made of  Ferrites.

Process control, A tank contains cold water at a temperature Tc = 20°C and ...

A tank contains cold water at a temperature Tc = 20°C and volume Vc = 1 m3. You add a volume Vh = 1 m3 of water at temperature Th = 100°C at time t = 0. Energy is lost from the tan

Look, nerve cell reproduces

nerve cell reproduces

Reaction, reaction between water and petrol engine exhaust gas(contain n2=7...

reaction between water and petrol engine exhaust gas(contain n2=71%, co2=21% ,co=1.5%)

Defines the process battery limits, Defines the process battery limits for ...

Defines the process battery limits for a plant to produce 500,000 tonnes per year of bioethanol. You should produce a process flow diagram of the plant and obtain literature capita

Specific consumption to produce DMAPA, Reactants Acrylonitrile and Dimethyl...

Reactants Acrylonitrile and Dimethylamine to form product DMAPA i.e. Dimethylaminopropylamine. What is the specific consumption of reactants to produce 1mole of DMAPA

Look, when do the cell get alot of thing in there thing because am confuse ...

when do the cell get alot of thing in there thing because am confuse cause is alot of thing becaus is crazy

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