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

Polymers, free radical mechanism

free radical mechanism

Volatile organic compound, The design of a monolith reactor for the VOCs re...

The design of a monolith reactor for the VOCs removal.(Benzene) Therefore, you are asked to do the following: 1. Choose a specific VOC; 2. Search for the reaction rate for

Preparation of benzoin by thiamine catalyst, How do u think the appropriate...

How do u think the appropriate enzyme would have affected the reaction

Chemistry, application problems on electrochemical series

application problems on electrochemical series

Gh, Ask questioghtdechyn #Minimum 100 words accepted#

Ask questioghtdechyn #Minimum 100 words accepted#

Classification of chemicals in the store, CLASSIFICATION OF CHEMICALS IN TH...

CLASSIFICATION OF CHEMICALS IN THE STORE Your Counsellor will give you names of any five chemicals. You fill up the report in tabular form (Table) indicating the name of the ch

Explain loss angle, Explain Loss Angle Loss Angle can be described a...

Explain Loss Angle Loss Angle can be described as the arc-tangent of the electrical dissipation factor.

Money, how much do you guys charge?

how much do you guys charge?

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

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