ENGINEERING ECONOMY - EXAMPLE 7.2 : In the purchase of a machine with a period n

ENGINEERING ECONOMY - EXAMPLE 7.2 : 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.

Question Posted / kangchuentat

1 Answers
2664 Views
I also Faced
E-Mail Answers

ENGINEERING ECONOMY - EXAMPLE 7.2 : In the purchase of a machine with a period n = 8.5 years, the mi..

Answer / kangchuentat

ENGINEERING ECONOMY - ANSWER 7.2 : (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

More Chemical Engineering Interview Questions

QUANTUM COMPUTING - EXAMPLE 32.2 : (a) If | 001 > = | 1 >, | 111 > = | 7 >, find the 2 possible values of ( | 001 > + | 1 > + | 7 > ) ( | 111 > ). (b) In quantum money, a duplicate will have probability P of passing the verification test of a bank, if the total number of photons on the bank note is N. The would be counterfeiter has a probability p of success in duplicating the quantum money correctly for each photon. Guess the relationship of P, p and N as a mathematical formula involving natural logarithm ln.

1 Answers

What are the reasons of removal of particles from effluent gas?

0 Answers

What is the maximum recommended velocity for steam in a plant pipe network?

0 Answers

Can any one send me the sample test papers of IOCL entry exam to be held on 6th july 2008. Also plz send the interview questions that cud probably be asked........i wud be highly obliged if u can send a few test paers and other stuff @ inderjeetd@gmail.com.........Inderpreet

0 Answers IOCL,

I HAVE DOMAIN KNOWLEDGE IN PROCESS MANUFACTURINGAND I GOT AN APPARTUNITY AS A BUSINESS ANALYST AND I DNT HAVE ANY KNOWLEDGE ON ORACLE APPS/GIVE ME ANY VALUBLE SUGGESTION?

0 Answers Satyam,

What is the principles of crayogenic expansion turbin

1 Answers Goyal Group,

how to reduce COD from plant waste water closed circulation system

1 Answers

Are you having any experience in antibody designing?

0 Answers

ENGINEERING MATHEMATICS - EXAMPLE 8.3 : Solve the first order differential equation : (Z + 1)(dy/dx) = xy in term of ln |y| = f(x). Z = (x)(x).

1 Answers

If the refrigerator is left open in closed room, What will be the effect on room temp.?

2 Answers

Hi, I am preparing for Indian Forest Service (UPSC). Can you please help me to get previous years question papers (Chemcial Engineerign) (atleast 5).

1 Answers

Question 62 – The names of the flow streams could be represented by : H1 for first hot stream, H2 for second hot stream, C1 for first cold stream, C2 for second cold stream. Data of supply temperature Ts in degree Celsius : 150 for H1, 170 for H2, 30 for C1, 30 for C2. Data of target temperature Tt in degree Celsius : 50 for H1, 169 for H2, 150 for C1, 40 for C2. Data of heat capacity Cp in kW / degree Celsius : 3 for H1, 360 for H2, 3 for C1, 30 for C2. (a) Find the enthalpy changes, dH for all streams of flow H1, H2, C1 and C2 in the unit of kW. Take note of the formula dH = (Cp) (Tt - Ts). (b) Match the hot streams H1 and H2 with the suitable cold streams C1 and C2 to achieve the maximum energy efficiency.

1 Answers

For more Chemical Engineering Interview Questions Click Here