A heat exchanger with initial investment of Rs. 3 lakhs has a 6 years life. How...
A heat exchanger with initial investment of Rs. 3 lakhs has a 6 years life. How much we can spend on an improved design which has a life of 12 years and is expected to save Rs. 10000 per year.Annual compound interest rate is 8%
Subject:Plant design and economics
Homework Answers
Add Answer to:
A heat exchanger with initial investment of Rs. 3 lakhs has a 6
years life. How...
A heat exchanger has been designed for use in a chemical process. A standard type of...
A heat exchanger has been designed for use in a chemical process. A standard type of heat exchanger with negligible scrap value costs 4000s and will have a useful life of 6 years. Another proposed heat exchanger of equivalent design capacity costs 6800s but will have a useful life of 10 years and a scrap value of 800S. Assuming an effective compound interest of 8% percent per year, determine which heat exchanger is cheaper by comparing the capitalized costs?
Problem 6: A heat exchanger is to be used in a heating process. A standard type...
Problem 6: A heat exchanger is to be used in a heating process. A standard type of heat exchanger (code name HX1) has an installed cost of $20,000 and a useful life of 6 years. At the end of its useful life, the standard heat exchanger has a negligible salvage value, assumed to be 0. Another type of heat exchanger (Code name HX2) with equivalent design capacity is priced at S34,000 ihstalled, has a useful life of 10 years and...
A project has a service life of five years with the initial investment outlay of $200,000....
A project has a service life of five years with the initial investment outlay of $200,000. If the discounted payback period occurs at the end of the project service life (say five years) at an interest rate of 10%, which of the following statements is true? A-The discounted payback period occurs at the end of project service life. B-The NPV of the project may equal or be greater than 0. C-We should invest in the project D-All of the above.
lets suppose, My initial investment is 5,00,000 Rs and I invest 1,00,000 rs per month ....
lets suppose, My initial investment is 5,00,000 Rs and I invest 1,00,000 rs per month . My investment earns 10 percent P. A. and after 3 year I increased my investment to 2,00,000 per month. and the intrest rate or return is same 10 percent per annum. After 6 years i startes to invest 3,00,000 rs per month and intrest rate or return is same. after 10 year i startes to invest 10,00,000 rs per month and intrest remains same....
A geothermal heat pump can save up to 85 % of the annual heating and cooling...
A geothermal heat pump can save up to 85 % of the annual heating and cooling bills of a certain home in the northeastern U.S. In this region, the yearly cost of conventionally heating and cooling a 2,000 square foot house is about $2 comma 600 . With a federal tax credit of 30 % on the total installation of the system, how much can a homeowner afford to spend for a geothermal heat pump if the interest rate is...
5 It is estimated that a certain piece of equipment saves Rs.260000 PLO-2 6 per year...
5 It is estimated that a certain piece of equipment saves Rs.260000 PLO-2 6 per year in labour and material costs. The equipment has an njk expected life of 8 years and a market value of Rs.80000. If the company must earn a 15% annual return on such investment, how much is justified now for the purchase of this equipment. Draw a cash-flow diagram from the company's view point.
An investment has an initial cost of $300,000 and a life of four years. This investment...
An investment has an initial cost of $300,000 and a life of four years. This investment will be depreciated by $60,000 a year and will generate the net income shown below. Should this project be accepted based on the average accounting rate of return (AAR) if the required rate is 29.5 percent? Why or why not? Net Income Year 1 $14,500 16,900 N 3 19,600 4 23,700 Select one: a. No, because the AAR is 29.5 percent b. Yes, because...
Fimbrez Corporation has provided the following data concerning an investment project that it is considering: initial...
Fimbrez Corporation has provided the following data concerning an investment project that it is considering: initial investment.............. $360,000 Annual cash flow............. $118,000 per year Expected life of project..... 4 years Discount rate................... 12% The net present value of the project is closest to: $358,484 $360,000 $(1,516) $112,000
Ch.15_104_005. A $350,000 capital investment proposal has an estimated life of four years and no residual...
Ch.15_104_005. A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows: Year Net Cash Flow Year Net Cash Flow $150,000 $104,000 130,000 90,000 The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value.
"Engineering Economics" How do you solve this using excel? 1. A machine costs $35,000 to buy...
"Engineering Economics"
How do you solve this using excel?
1. A machine costs $35,000 to buy and $5,000 per year to operate and maintain. It will have a salvage value of $8,000 in 9 years. It will generate $10,000 per year in net revenue for the first four years, and then the revenue will fall by $1,000 each year after. If the company purchasing the machine uses a MARR of 7% to make project, find the NPW, NEW, and AW....
Problem 6: A heat exchanger is to be used in a heating process. A standard type of heat exchanger (code name HX1) has an installed cost of $20,000 and a useful life of 6 years. At the end of its useful life, the standard heat exchanger has a negligible salvage value, assumed to be 0. Another type of heat exchanger (Code name HX2) with equivalent design capacity is priced at S34,000 ihstalled, has a useful life of 10 years and...
5 It is estimated that a certain piece of equipment saves Rs.260000 PLO-2 6 per year in labour and material costs. The equipment has an njk expected life of 8 years and a market value of Rs.80000. If the company must earn a 15% annual return on such investment, how much is justified now for the purchase of this equipment. Draw a cash-flow diagram from the company's view point.
An investment has an initial cost of $300,000 and a life of four years. This investment will be depreciated by $60,000 a year and will generate the net income shown below. Should this project be accepted based on the average accounting rate of return (AAR) if the required rate is 29.5 percent? Why or why not? Net Income Year 1 $14,500 16,900 N 3 19,600 4 23,700 Select one: a. No, because the AAR is 29.5 percent b. Yes, because...
Ch.15_104_005. A $350,000 capital investment proposal has an estimated life of four years and no residual value. The estimated net cash flows are as follows: Year Net Cash Flow Year Net Cash Flow $150,000 $104,000 130,000 90,000 The minimum desired rate of return for net present value analysis is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Determine the net present value.
"Engineering Economics"
How do you solve this using excel?
1. A machine costs $35,000 to buy and $5,000 per year to operate and maintain. It will have a salvage value of $8,000 in 9 years. It will generate $10,000 per year in net revenue for the first four years, and then the revenue will fall by $1,000 each year after. If the company purchasing the machine uses a MARR of 7% to make project, find the NPW, NEW, and AW....
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago