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Question 4 The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical
Question 4 The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have b uced to three designs. The estimated capital investment amounts and annual expense savings are as follows Assume that the MARR s 12% per year, the stud period is six years, and the market value is zero for all three designs. Apply an equivalent worth analysis method to determine the preferred alternative. Design ER2 EoY ER3 8,600115000 After year one, the ennual savings tre-stimated topcrease at the rate of 6% per year. Ater year one, the amrual esvings are estimated to increase $150 per year Uraform sequence of anauul savings O Recommend Design ER1 O Recommend Design ER2 O Recommend Design ER3
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