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Problem No. 2 (Capitalized cost) A shell and tube heat exchanger is to be used in corrosive service. If carbon steel tubes are used, the
Problem No. 2 (Capitalized cost) A shell and tube heat exchanger is to be used in corrosive service. If carbon steel tubes are used, the cost of the exchanger is $ 160,000 and it is expected that the exchanger will need to be replaced after two years. If stainless streel tubes are used, the service life will be five years, but the cost will increase to $ 300,000. The cost of capital is 15 percent. Which option should be selected
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