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

Dynamics, kenematics of rigid body in rotation

kenematics of rigid body in rotation

Water technology, problems of scales and sludge formation

problems of scales and sludge formation

Nitroparaffins, will u provide chemical properties of nitroparaffins and it...

will u provide chemical properties of nitroparaffins and its block diagram for preparation of nitroparaffins?

Find a friction factor-newton-raphson method, Colebrook equation is used to...

Colebrook equation is used to find a friction factor, f , in a pipe flow as given by: where ? and Re are the roughness ratio and Reynolds number respectively. Considering

Explain hard-baking, Hard-Baking Hard-baking is the final step in the p...

Hard-Baking Hard-baking is the final step in the photolithographic process. This step is essential in order to harden the photoresist and better adhesion of the photoresist to

.paint production, what is the effect of surfactant in paint

what is the effect of surfactant in paint

Heating oil, is DTA a type of heating oil in constant temperature bath?

is DTA a type of heating oil in constant temperature bath?

Euler''s implicit backward method, A chemical specie decays over time when ...

A chemical specie decays over time when is subject to air and simultaneously reproduced by another process as given by:  where c is the concentration of the specie and co i

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