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
2725 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

What information is needed to specify a mixer?

0 Answers

Explain how can you separate hydrogen peroxide into hydrogen and oxygen?

0 Answers

What is a "saltation velocity"?

0 Answers

What is the meaning – strain? In a distillation column, if a metal block 10 cm on a side is deformed so that it becomes 9 cm long due to cooling effect, what is the strain involved in percentage?

1 Answers

wt is inhand salary in hpcl as a officer in research and development?????

0 Answers

COMPUTER PROGRAMMING FOR ENGINEERS - EXAMPLE 17.3 : (a) The byte is the basic building block of computer data used in chemical engineering process simulation where 16 bits make a word, 4 bits make a nibble, 32 bits make a quad word and 8 bits make a byte. Then how many nibbles are there in a megabytes? (b) In computer data items, let : 1 bit - counts from 0 to 1, 8 bits - counts from 0 to 255, 16 bits - counts from 0 to A. What is the value of A? (c) In a binary system of 4 bits, if 1100 = 12, 1101 = 13, 1110 = 14, 1111 = 15, B = 16, then guess the value of B. (d) By using any form of tools, find the exact value of 2 power 64 or 2^64.

1 Answers

Why is the freezer placed at the top in a refrigerator, why not at the bottom ?

2 Answers

Question - Chemical Engineering Material - In crystal material, hexagonal crystal system could form 4-digit index in certain direction of solid. For [1(-1)0] direction in the hexagonal crystal systems of particular catalyst applied in fume removal of incinerator, what is the four-digit index for this direction? Hint : The transformation equations between the 3-digit [h’k’l’] and the 4-digit [hkil] indices are : h = (1/3) (2h’ – k’); i = - (h + k); k = (1/3) (2k’ – h’); l = l’. A. [(-1)100] B. [1(-1)00] C. [(-1)000] D. [00(-1)(-1)] E. [(-1)0(-1)0]

1 Answers

marketing procedure of iocl

0 Answers IOCL,

how does refractive index detector work?

0 Answers

What does the catalystic converter on an automobile really do?

0 Answers

hello sir..iam keen to sit for iocl interview..please forward sample iocl questions to my id: kunal_kv06@yahoo.co.in

0 Answers IOCL,

For more Chemical Engineering Interview Questions Click Here