Question: A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth analysis on alternative pipeline routings-the first predominately by

A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth analysis on alternative pipeline routings-the first predominately by land and the second primarily undersea. The undersea route is more expensive initially due to extra corrosion protection and installation costs, but cheaper security and maintenance reduces annual costs. Perform the analysis for the engineer at 15% peryear.

Land Undersea -215 350 Installation cost, Sillion Pumping, operating, security, -22 S millonper year Replacement of valves and -30-70 appurtenances in year 25, S million Expected life, years 50 50

Step by Step Solution

★★★★★

3.43 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

In million units PW Land 215 22PA 15 50 30PF 15 2... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

217-B-E-M (1107).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Perform a present worth analysis of equal-service machines with the costs shown below, if the MARR is 10% per year. Revenues for all three alternatives are expected to be the same.

In a present worth analysis of certain equipment, one alternative has a net present worth of + 420, based on a 6-year analysis period that equals the useful life of the alternative. A 10% interest...

A long 1.2 m OD pipeline carrying oil is to be installed in Alaska. To prevent the oil from becoming too viscous for pumping, the pipeline is buried 3 m below ground. The oil is also heated...

solve the question Compute the sample variance and standard deviation for the water absorbency data of Exercise 1.2 on page 13. Reference: Exercise 1.2 According to the journal Chemical Engineering,...

solve the question A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth analysis on alternative pipeline routings-the first predominately by land and the second...

Solve the question Compute the sample variance and standard deviation for the water absorbency data of Exercise 1.2 on page 13. Reference: Exercise 1.2 According to the journal Chemical Engineering,...

solve the following question For the data of Exercise 1.4 on page 13, compute both the mean and the variance in "flexibility" for both company A and company B. Does there appear to be a difference in...

solve the question The tensile strength of silicone rubber is thought to be a function of curing temperature. A study was carried out in which samples of 12 specimens of the rubber were prepared...

3. A pipeline engineer working in Kuwait for BP (formerly British Petroleum) wants to perform a capitalized cost analysis on alternative pipeline routings-one predominately by land and the second...

The cubes in Problem 29 are rearranged in parallel as shown in figure. Find (a) The thermal current carried by each cube from one side to the other, (b) The total thermal current, and (c) The...

Tracy Jones has set up a business and trades as an unincorporated entity or sole trader. Tracy introduced her own car to the business. The car was worth 14,000. What journal entries should be used to...

11.2 What is a stressful time in an organizational environment?

As a leader, what responsibilities did Jesus have to those who did not follow him? How did he handle those? What responsibilities did he have to those who did follow him? How did he handle those?...

A U.S. government bond matures in 10 years. Its quoted price is now 96.4, which means the buyer will pay $96.40 per $100 of the bonds face value. The bond pays 5% interest on its face value each...

The price of a 10-year bond can decline by approximately 9% if interest rates rise by 1% point. To illustrate this, suppose you own a 10-year U.S. Treasury bond that has a bond rate of 2% per year....

A new six-speed automatic transmission for automobiles offers an estimated 4% improvement in fuel economy compared to traditional four-speed transmissions in front-wheel drive cars. If a four-speed...

You have a portfolio with a standard deviation of 30% and an expected return of 16%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have...

Decide whether you can use the normal distribution to approximate the binomial distribution. If you can, use the normal distribution to approximate the indicated probabilities and sketch their...

Suppose that the average number of Facebook friends users have is normally.r distributed with a mean of '11'3I and a standard deviation of about 54. Assume forty-eight individuals are randomly...