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

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

Explain soft-baking, Soft-Baking Soft-baking is the step during which a...

Soft-Baking Soft-baking is the step during which almost all of the solvents are separate from the photo resist coating. Soft-baking plays a very critical role in photo-imaging.

Properties of filament and contact materials, Properties of filament and co...

Properties of filament and contact materials. The Filament materials must have low resistance temperature co-efficient, high melting point, high mechanical strength, ductility

Refractoriness, Refractoriness: It indicates the capacity of a material to...

Refractoriness: It indicates the capacity of a material to withstand heat without appreciable deformation or softening under particular operating conditions and is measured as the

How can the particle size distribution be determined, For a given bulk soli...

For a given bulk solid how can the particle size distribution be determined? In order to determine particle size distribution the simplest method is to make use of a sieve stac

Semilog plot and logarithmic axis, "A semilog plot of y(logarithmic axis) v...

"A semilog plot of y(logarithmic axis) versus x passes through (1,2) and (2,1)." The given equation is y=4.00exp(-0.693x).I am supposed to end up with a graph, but I''m not sure if

Moment, the frame in figure consisted of members AB and BCD connected by pi...

the frame in figure consisted of members AB and BCD connected by pin at B, and member AB is a quarter circle of radius 75mm. the whole frame is supported by pins at A and C. for th

Different types of polarization mechanisms in dielectrics, Explain the diff...

Explain the different types of polarization mechanisms in dielectrics. There are essentially four basic kinds of polarization mechanisms: Interface polarization: Electron

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