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

Heat capacity, Heat capacity: Heat capacity of furnace depend on (1)   ...

Heat capacity: Heat capacity of furnace depend on (1)         Thermal conductivity (2) Specific heat and (3) Specific gravity of refractory. The dense and heavy fire clay

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

Hazop and hazan , write hazop study to dethanizer column and brief hazan ...

write hazop study to dethanizer column and brief hazan write brief hazan for shell and tub will send PID for both if you agree do this

Axon, Ask queswhat is axontion #Minimum 100 words accepted#

Ask queswhat is axontion #Minimum 100 words accepted#

Work is completed as the steam expands, Steam at 400C, 100 bar in an insula...

Steam at 400C, 100 bar in an insulated cylinder is rapidly decompressed to 10 bar, by unlocking the piston and permitting the gas to expand, with a constant external pressure of 10

Mass balance, engineering applications in sustainable design and developmen...

engineering applications in sustainable design and development

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

Determine the carbon is an asymmetric center, Which one of the following st...

Which one of the following statements is correct? You may wish to examine a molecular model of this compound. 1. Carbon D is an asymmetric center and its configuration is R 2

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