A plant that operates at high temperatures and moderate pressures is being constructed. You have been asked

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A plant that operates at high temperatures and moderate pressures is being constructed. You have been asked to evaluate two alternatives for the gasket materials used in the plant. These gasket materials have different lives, different replacement costs, and different maintenance costs: 

Gasket A

Life = 2 yr

Maintenance cost = $5/year/gasket

Replacement cost = $100/gasket


Gasket B

Life = 7 yr

Maintenance cost = $2/year/gasket

Replacement cost = $?/gasket

If the hurdle rate for such comparisons is 5% p.a., determine what the cost of Gasket B would be so that there is no advantage between the two gaskets.

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Related Book For  book-img-for-question

Analysis Synthesis And Design Of Chemical Processes

ISBN: 9780134177403

5th Edition

Authors: Richard Turton, Joseph Shaeiwitz, Debangsu Bhattacharyya, Wallace Whiting

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