Question 53 - In the purchase of a machine with a period n = 8.5 years, the minimum attractive rate of return, i = 12 %, the cost P = $55000, F = $4000 is the salvage, annual maintenance A = $3500. The return of the investment or equivalent uniform annual benefit is $15000. The equivalent uniform annual cost is P (A / P, i, n) + A - F (A / F, i, n). The investment is considered acceptable only when equivalent uniform annual benefit is greater than the equivalent uniform annual cost. From the compound interest table, (A / P, i = 12 %, n = 8 years) = 0.2013, (A / P, i = 12 %, n = 9 years) = 0.1877, (A / F, i = 12 %, n = 8 years) = 0.0813, (A / F, i = 12 %, n = 9 years) = 0.0677. Prove by calculations whether the investment above is acceptable.
Answer Posted / kang chuen tat (malaysia - pen
Answer 53 - (A / P, i = 12 %, n = 8.5 years) = (0.2013 + 0.1877) / 2 = 0.1945. (A / F, i = 12 %, n = 8.5 years) = (0.0813 + 0.0677) / 2 = 0.0745. Equivalent uniform annual cost = P (A / P, i = 12 %, n = 8.5 years) + A - F (A / F, i = 12 %, n = 8.5 years) = $55000 (0.1945) + $3500 - $4000 (0.0745) = $13899.5 < $15000 (equivalent uniform annual benefit). The investment is proven acceptable. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
Is This Answer Correct ? | 0 Yes | 0 No |
Post New Answer View All Answers
Do you have recombinant protein expression experience? Explain?
can anyone send me the written test paper of Indian oil corporation ltd. My email id is pratuljakhmola@yahoo.com
What are the types of load?
Dear sir/madam I am in final year BE chemical engineering.Which companies i can apply .Please guide me.It is very helpful for me
Dear guys we adding hypo at climax plant and that water is inlet to DM plant so with hypo water that can affect my resins of cation and anion. if it is affect life of my anion and cation so what kind of steps should be take.
Explain what are the assumptions made on conservation equation?
Hi, This is Naveen, plz if anybody have experience of IOCL interview, send me question.
What is the procedure to estimate the friction factor involved in heat exchanger tubes?
Why should chemical equation be balanced?
sir, kindly explain to me that how to calculate volume of torrispherical vessel which is used in pharma company ss reactor bottom dish volume. thank u.
What is a barometric condenser?
We are having proplem with the persperation smell in ETT/ECHO room in our cardiac hospital.The 2 Ton of AC is not conditioning the environment. We have to use exhaust fan to through out of the room bad air. Could anyone suggest how to coup with this effectively using chemical engineering. Any permanent solution to neutralise the bad smell.The Air freshners are not doing enough instead making a bad odour.
Explain the use of gear pumps in motor?
What are the problems that are associated with the expansion joints?
How can wet carbon dioxide be responsible for a corrosion problem in iron-containing metals?