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

Organic chemistry, explain the identification of organic compounds basing o...

explain the identification of organic compounds basing on the structural theory

Determine the void ratio, One cubic metre of wet soil weighs 19.80 kN. If t...

One cubic metre of wet soil weighs 19.80 kN. If the exact gravity of soil particles is 2.70 and water content is 11%, Determine the void ratio, dry density and degree of saturat

Material balance, Strawberries contain about 20 wt% solids and 80 wt% water...

Strawberries contain about 20 wt% solids and 80 wt% water. To make strawberry jam, crushed strawberries and sugar are mixed in a 40:60 mass ratio, and the mixture is heated to evap

Provision for services-gas, Normal 0 false false false fals...

Normal 0 false false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Thermal spelling, Thermal spelling: The breaking or cracking or peeling of...

Thermal spelling: The breaking or cracking or peeling off the refractory is known as spelling. A good refractory must show a good resistance to thermal spelling. Thermal spelling

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

Polymerization, merits and demerits of free radical polymerisation

merits and demerits of free radical polymerisation

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