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

Look, nerve cell reproduces

nerve cell reproduces

Material balance, Strawberries contain about 20 wt% solids and 80 wt% water...

Strawberries contain about 20 wt% solids and 80 wt% water. To make strawberry jam, crushed strawberries and sugar are mixed in a 40:60 mass ratio, and the mixture is heated to evap

Edta method, structure of EDTA and estimation of hardness of water by Edta ...

structure of EDTA and estimation of hardness of water by Edta method

PROCESS CONTROL, HOW CAN I BE ABLE TO CONTROL AND BALANCE THE INPUT AND OUT...

HOW CAN I BE ABLE TO CONTROL AND BALANCE THE INPUT AND OUT-PUT

Calculation of empirical and molecular formula, An organic compound is foun...

An organic compound is found to contain 37.5% of C, 3.2% of H and 59.3% of F. The following pressure and volume data were obtained for 1.0g of this substance at 90 degrees celsius

Bubble cap tray and counter flow tray, a. Describe the problems of flooding...

a. Describe the problems of flooding and channelling in packed tower b. Describe the construction and working of sieve tray, bubble cap tray and counter flow tray c. Describe

#titSTEAM GENERATION AT CONSTANT PRESSUREle.., #question.WHAT IS STEAM GENE...

#question.WHAT IS STEAM GENERATION AT CONSTATNT PRESSURE .

Explain polarizability, Explain Polarizability Polarizability is the ...

Explain Polarizability Polarizability is the relative tendency of a charge distribution, such as the electron cloud of an atom or molecule, to be distorted from its normal sh

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