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  • Engineering Economy

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    jod_ree
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    A fluidized-bed combustion vessel has an initial investment cost of $100,000 and a 10 year lifespan with annual maintenance costs of $8,000. It will undergo a $20,000 relining in year 5 when it will be out of service. With an interest rate of 15%, the lump sum equivalent cost of the project today is $146,116.27.

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    engineering economy

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    A fluidized-bed combustion vessel has an initial investment cost of $100,000 and a 10 year lifespan with annual maintenance costs of $8,000. It will undergo a $20,000 relining in year 5 when it will be out of service. With an interest rate of 15%, the lump sum equivalent cost of the project today is $146,116.27.

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    Signaler comme contenu inapproprié
    553 vues1 page

    Engineering Economy

    Transféré par

    jod_ree
    A fluidized-bed combustion vessel has an initial investment cost of $100,000 and a 10 year lifespan with annual maintenance costs of $8,000. It will undergo a $20,000 relining in year 5 when it will be out of service. With an interest rate of 15%, the lump sum equivalent cost of the project today is $146,116.27.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 1

    Engineering Economy 1.

    A certain fluidized-bed combustion vessel has an investment cost of $100,00, a life of 10 years and negligible market (resale) value. Annual cost of materials, maintenance, and electric power for the vessel are expected to total to $8,000.00. A major relining of combustion vessel will occur during the fifth year at a cost of $20,000; during this year, the vessel will not be in service. If the interest rate is 15% per year, what is the lump sum equivalent cost of this project at the present time?

    A annual cost = $8,000 i interest rate per year = 15% n 10 years IC initial investment cost = $100,000 A5 $20,000
    A 1 ( 1 i )10 ( A5 A )( 1 i )5 i $8 ,000 Present worth $100,000 1 ( 1 0.15 )10 ($20 ,000 $8 ,000 )( 1 0.15 )5 0.15 Present worth $146,116.27

    Present worth IC

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