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

Materials for ac applications, Materials for AC applications  These app...

Materials for AC applications  These applications generally needs low coercivity Hc and low power loss, high permeability µ, high saturation magnetization.  The low value of

find the entropy, For a substance explained by the van der Waals equation ...

For a substance explained by the van der Waals equation of state with a constant heat capacity CV : 1) Find the internal energy U(T, V ), relative to a reference state at some T

Temperature of the shield, Two parallel planes 1.2x1.2 are splited by a dis...

Two parallel planes 1.2x1.2 are splited by a distance of 1.2 m. the emissivity's of the planes are 0.4 and 0.6, and the temperature are 760 and 300 oC, correspondingly. A 1.2x1.2 r

Sketch their bode plots and compare with the matlab figures, 1. Consider th...

1. Consider the previous heat exchanger.  Tune a proportional controller for a)  GM = 2; PM = 45 degrees and c)  MPH (maximum peak height) occurs at 2 dB (provides a z of ~ 0.4).

Explain the manufacture of neoprene rubber, 1. Discuss the relation between...

1. Discuss the relation between the structure and following properties of polymers      a) Crystallinity  b) Elasticity 2 . Explain the manufacture of Neoprene rubber. Menti

Processing, putting example of literature review

putting example of literature review

Scale and sludge, discuss the conditing method and technique for prevent...

discuss the conditing method and technique for prevention demoval of scales and sludge problem.

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