Question
Given that the typical belt conveyor speed can be up to 65 feet per minute and the cost of this type of conveyor has been
Given that the typical belt conveyor speed can be up to 65 feet per minute and the cost of this type of conveyor has been estimated to be $5000/m with a service life of 10 years (ignore the possible salvage at the end of the service life as it is considered to be compensated by the requirement of the demolition charge!) and the internal rate of return is 0.5% per month. The products which are going to be transferred will have maximum length of 10 inches. The production rate is from 10 products to a maximum of 15 products per minute and a minimum of 8 inches spacing is required between any two products on the conveyor. Now, you are asked to determine whether a conveyor is able serve the purpose or not before you put it into your equipment selection list. If this conveyor is 36 m length and it fits our purpose, what will be the fixed cost (per month)? (Given: 1 m = 3.28 feet)
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