A plant that operates at high temperatures and moderate pressures is being constructed. You have been asked
Question:
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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Step by Step Answer:
To determine the cost of Gasket B that would make it equivalent to Gasket A we need to equate the pr...View the full answer
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Related Book For 
Analysis Synthesis And Design Of Chemical Processes
ISBN: 9780134177403
5th Edition
Authors: Richard Turton, Joseph Shaeiwitz, Debangsu Bhattacharyya, Wallace Whiting
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