38. A company would like to open a factory that produces women dress. The company made prepared a business plan that states the following: -The operation and maintenance (O&M) costs will start art from the first year -The revenue resulting from selling the products will start from year 2 The table below shows the details of the Costs and revenues associated with opening this new factory however the business plan states that the company should earn a revenue (x) in the first year in order to achieve a required MARR of 12% per year. This revenue can be generated by leasing a space in the factory on monthly basis for 1 year only with a nominal interest rate - 12% compounded monthly. 2 3 4 5 6 7 8 9 Year 0 1 Investmen 32000 cost O&M 1000 Revenue X Market Value 500 3500 700 3700 600 3600 600 3600 900 3900 900 3900 600 3600 1000 4000 5410 What should be the minimum monthly amount resulting from renting the factory space. 39. An oil company is planning to install a new pipeline to connect storage tanks to a processing plant 1500 meters away. Both 120 mm and 180 mm diameter pipes are being considered and both had the same AW value. The MARR - 12% compounded quarterly. Relevant data for both pipes are given in the following table. Determine the Initial cost "X" for the 120 mm pipe that makes the AW of the 120 mm diameter equals that of the 180 mm diameter pipe? 180 mm diameter pipe Initial cost ($) Service life Salvage value ($) Quarterly maintanence Pump Cost $/hour.m Pump Operation 120 mm diameter pipe x 6 years 300 80 0.014 200 hour/year 180 mm diameter pipe 5500 5 years 400 70 0.013 200 hour/year 38. A company would like to open a factory that produces women dress. The company made prepared a business plan that states the following: -The operation and maintenance (O&M) costs will start art from the first year -The revenue resulting from selling the products will start from year 2 The table below shows the details of the Costs and revenues associated with opening this new factory however the business plan states that the company should earn a revenue (x) in the first year in order to achieve a required MARR of 12% per year. This revenue can be generated by leasing a space in the factory on monthly basis for 1 year only with a nominal interest rate - 12% compounded monthly. 2 3 4 5 6 7 8 9 Year 0 1 Investmen 32000 cost O&M 1000 Revenue X Market Value 500 3500 700 3700 600 3600 600 3600 900 3900 900 3900 600 3600 1000 4000 5410 What should be the minimum monthly amount resulting from renting the factory space. 39. An oil company is planning to install a new pipeline to connect storage tanks to a processing plant 1500 meters away. Both 120 mm and 180 mm diameter pipes are being considered and both had the same AW value. The MARR - 12% compounded quarterly. Relevant data for both pipes are given in the following table. Determine the Initial cost "X" for the 120 mm pipe that makes the AW of the 120 mm diameter equals that of the 180 mm diameter pipe? 180 mm diameter pipe Initial cost ($) Service life Salvage value ($) Quarterly maintanence Pump Cost $/hour.m Pump Operation 120 mm diameter pipe x 6 years 300 80 0.014 200 hour/year 180 mm diameter pipe 5500 5 years 400 70 0.013 200 hour/year