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

Water vapour coexist in equilibrium, The degree of freedom when ice water a...

The degree of freedom when ice water and water vapour coexist in equilibrium is zero

#titleHardness of Water, Ask question #Minimum 100 words accepted.hardness ...

Ask question #Minimum 100 words accepted.hardness of bore water is less than that of sea water-justify

How many types of breakdown are possible in dielectrics, The following thre...

The following three types of breakdown are possible in Dielectrics: (a) Electrothermal Breakdown - This is caused by the heat produced because of the dielectric loss which is

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

How are polymers classified, 1. a) How are Polymers classified?    b) De...

1. a) How are Polymers classified?    b) Define polymerization. Differentiate addition and condensation polymerization. 2. a) Explain the free radical mechanism of addition p

Requirment for study design and features of laboratory, REQUIREMENTS Wo...

REQUIREMENTS Workbook cum Lab. manual Block 1 (LT-1 course) Pencil Pen Eraser Scale Coloured pens

Entry and exit points features of a laboratory, Entry and exit points Y...

Entry and exit points You should see them from the point of view of access, convenience and safety. 1. Observations 2. Comments and Suggestions

Electrolysis, Could I get a code on designing electrolytic reactors in the ...

Could I get a code on designing electrolytic reactors in the production of sodium ?

Water Treatment, Among phosphate and calgon methods, which one would be the...

Among phosphate and calgon methods, which one would be the best option for internal conditioning

Explain antiferromagnetic materials, Explain Antiferromagnetic materials ...

Explain Antiferromagnetic materials Antiferromagnetic materials are the materials in which almost every magnetic dipole is linked up ant parallel to each other. Its susceptib

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