Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis. (Use Excel) Annual Operating Cost, S per Year Machine First Cost, S 31,000 -16,000 19,300 -29.000 -34,500 -49.000 41,000 17,000 12,200 15,500 1. ABB purchased fieldbus communication equipment for a project in South Africa for $3.15 million. The net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated regardless of when it is sold. Determine the number of years the equipment mist be used to obtain payback at MARR values of (a) 0% (start in year 4) and 8% per year (start in year 7). (CHAPTER 13). 2. Use the exponent values in Table 156 to estimate the cost for the following equipment to be placed on an offshore drilling platform. (CHAPTER 15) (a) The cost of a 125-hp centrifugal pump if a 200-hp pump costs $28,000. (b) The cost of a 1700-gallon stainless steel tank if a 900-gallon tank costs $4100. TABLE 15-6 Sample Exponent Values for Cost-Capacity Equations Component/System/Plant Size Range Exponent 0.84 Activated sludge plant Aerobic digester 1-100 MGD 0.2-40 MGD 0.14 0.46 1000-7000 t/min 40-60 in 3000-350,00 tons/year 0.1-100 MGD 5-300 hp Blower 0.71 Centrifuge Chlorine plant 0.44 0.98 Clarifier 0.90 Compressor, reciprocating (air service) O Focus Hixes, and improvements, choose Check for Updates. TABLE 15-6 Sample Exponent Values for Cost-Capacity Equations Component/System/Plant Size Range Exponent Activated sludge plant Acrobic digester 1-100 MGD 0.2-40 MGD 1000-7000 ft/min 0.84 0.14 Blower 0.46 Centrifuge Chiine plant Clarifier 40-60 in 0.71 3000-350,000 tons/year 0.44 0.1-100 MGD S-300 hp 200-2100 hp 20-8000 ft'/min 15-400 ft 0.98 Compressor, reciprocating (air service) Compressor Cyclone separator Dryer Filter, sand Heat exchanger Hydrogen plant Laboratory Lagoon, aerated Pump, centrifugal 0.90 0.32 0.64 0.71 0.5-200 MGD 500-3000 ft 500-20,000 scfd 0.82 0.5 0.56 0.05-50 MGD 1.02 0.05-20 MGD 1.13 10-200 hp 0.69 50-4000 gal 0.74 Reactor 0.04-5 MGD 1.35 Sludge drying beds Stabilization pond 0.14 0.01-0.2 MGD 0.67 100-2000 gal Tank, stainless standard cubic feet per day. Note: MGD - million gallons per day; hp - horsepower, sefd matcu tolal piant Cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -270,000 -135,000 75,000 -245,000 -139,000 35,000 6. 6. matcu tolal piant Cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -270,000 -135,000 75,000 -245,000 -139,000 35,000 6. 6. 21034567 6. Determine the economic service life and corresponding AW value for a machine that has the following cash flow estimates. Use an interest rate of 14% per year and hand solution. (CHAPTER 11) Salvage Value, $ Operating Cost, $ per Year Year 100,000 75,000 60,000 50,000 40,000 -28,000 -31,000 -34,000 -34,000 -34,000 -45,000 -49,000 25,000 15,000 7. A chemical engineer is considering two sizes of pipes, small (S) and large (L), for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost. In writing the report, the engineer compared the alternatives based on future worth values, but the company president wants the costs expressed as present dollars. Determine present worth values if future worth values are FWs $2.3 million and FWT $2.5 million. The company uses a real interest rate of 1% per month and an inflation rate of 0.4% per month. Assume the future worth values were for a 10-year project period. (CHAPTER 14) Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis. (Use Excel) Annual Operating Cost, S per Year First Cost, $ Machine -31.000 29 ,000 34,500 49.000 -16,000 19,300 3 17,000 -12,200 15,500 4. 41.000 ABB purchased fieldbus communication equipment for a project in South Africa for 1. $3.15 million. The net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated regardless of when it is sold. Determine the number of years the equipment miust be used to obtain payback at MARR values of (a) 0% (start in year 4) and 8% per year (start in year 7). (CHAPTER 13). 2. Use the exponent values in Table 156 to estimate the cost for the following equipment to be placed on an offshore drilling platform. (CHAPTER 15) (a) The cost of a 125-hp centrifugal pump if a 200-hp pump costs $28,000. (b) The cost of a 1700-gallon stainless steel tank if a 900-gallon tank costs $4100. Sample Exponent Values for Cost-Capacity Equations TABLE 15-6 Component/System/Plant Size Range Exponent 1-100 MGD 0.2-40 MGD Activated sludge plant Aerobic digester 0.84 0.14 0.46 1000-7000 t/min 40-60 in 3000-350 D00 tons/year 0.1-100 MGD 5-300 hp Blower 0.71 Centrifuge Chlorine plant 0.4 0.98 Clarifier 0.90 Compressor, reciprocating (air service) R Focus kes, and improvements, choose Check for Updates. TABLE 15-6 Sample Exponent Values for Cost-Capacity Equations Component/System/Plant Size Range Exponent Activated sludge plant Aerobic digester Blower Centrifuge Chr ine plant Clarifier Compressor, reciprocating (air service) Compressor Cyclone separator Dryer Pilter, sand Heat exchanger lydrogen plant Laboratory Lagoon, aerated Pump, centrifugal Reactor Sludge drying beds Stabilization pond Cank, stainless 1-100 MGD 0.84 0.2-40 MGD 0.14 1000-7000 ft/min 0.46 40-60 in 0.71 3000-350 000 tons/year 0.44 0.1-100 MGD S-300 hp 200-2100 hp 20-8000 ft'/min 15-400 ft 0.98 0.90 0.32 0.64 0.71 05-200 MGD 0.82 500-3000 ft 0.55 500-20,000 sefd 0.05-50 MGD 0.56 1.02 0.05-20 MGD 10-200 hp 50-4000 gal 1.13 0.69 0.74 1.35 0.04-5 MGD 0.14 0.01-0.2 MGD 0.67 100-2000 gal standard cubic feet per day. million gallons per day: hp horsepower; sefd Wote: MGD 3. A consulting engineering firm is preparing a preliminary cost estimate for a design- construct project of a coal processing plant. The firm, which completed a similar project in 2001 with a construction cost of $30 million, wants to use the ENR construction cost index to update the cost. Use the values in Table 15-3 to estimate the cost of construction for a similar-size plant in mid-2010. (From Table 15-3, index value in 2001 = 6343; index value in mid-2010 = 8837) (CHAPTER 15). 4. The equipment cost for a 10-gallon per minute farm-scale ethanol fuel production plant is $243,000. The direct cost factor for construction is 1.28 and for installation is 0.23. The indirect cost factor for licenses, insurance, etc. is 0.84 (applied to total direct cost). Determine the estimated total plant cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Focus plant cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -245,000 -139,000 35,000 -270,000 -135,000 75,000 6. 6. plant cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -245,000 -139,000 35,000 -270,000 -135,000 75,000 6. 6. 6. Determine the economic service life and corresponding AW value for a machine that has the following cash flow estimates. Use an interest rate of 14% per year and hand solution. (CHAPTER 11) Salvage Value, $ Operating Cost, $ per Year Year 100,000 75,000 60,000 50,000 40,000 25,000 15,000 -28,000 -31,000 -34,000 -34,000 -34,000 -45,000 -49,000 11234567 7. A chemical engineer is considering two sizes of pipes, small (S) and large (L), for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost. In writing the report, the engineer compared the alternatives based on future worth values, but the company president wants the costs expressed as present dollars. Determine present worth values if future worth values are FWs $2.3 million and FWT $2.5 million. The company uses a real interest rate of 1% per month and an inflation rate of 0.4% per month. Assume the future worth values were for a 10-year project period. (CHAPTER 14) Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis. (Use Excel) Annual Operating Cost, S per Year Machine First Cost, $ -31.000 29 000 34,500 49.000 -16,000 19,300 3 17,000 -12,200 15,500 4. 41.000 Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis. (Use Excel) Annual Operating Cost, S per Year Machine First Cost, S 31,000 -16,000 19,300 -29.000 -34,500 -49.000 41,000 17,000 12,200 15,500 1. ABB purchased fieldbus communication equipment for a project in South Africa for $3.15 million. The net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated regardless of when it is sold. Determine the number of years the equipment mist be used to obtain payback at MARR values of (a) 0% (start in year 4) and 8% per year (start in year 7). (CHAPTER 13). 2. Use the exponent values in Table 156 to estimate the cost for the following equipment to be placed on an offshore drilling platform. (CHAPTER 15) (a) The cost of a 125-hp centrifugal pump if a 200-hp pump costs $28,000. (b) The cost of a 1700-gallon stainless steel tank if a 900-gallon tank costs $4100. TABLE 15-6 Sample Exponent Values for Cost-Capacity Equations Component/System/Plant Size Range Exponent 0.84 Activated sludge plant Aerobic digester 1-100 MGD 0.2-40 MGD 0.14 0.46 1000-7000 t/min 40-60 in 3000-350,00 tons/year 0.1-100 MGD 5-300 hp Blower 0.71 Centrifuge Chlorine plant 0.44 0.98 Clarifier 0.90 Compressor, reciprocating (air service) O Focus Hixes, and improvements, choose Check for Updates. TABLE 15-6 Sample Exponent Values for Cost-Capacity Equations Component/System/Plant Size Range Exponent Activated sludge plant Acrobic digester 1-100 MGD 0.2-40 MGD 1000-7000 ft/min 0.84 0.14 Blower 0.46 Centrifuge Chiine plant Clarifier 40-60 in 0.71 3000-350,000 tons/year 0.44 0.1-100 MGD S-300 hp 200-2100 hp 20-8000 ft'/min 15-400 ft 0.98 Compressor, reciprocating (air service) Compressor Cyclone separator Dryer Filter, sand Heat exchanger Hydrogen plant Laboratory Lagoon, aerated Pump, centrifugal 0.90 0.32 0.64 0.71 0.5-200 MGD 500-3000 ft 500-20,000 scfd 0.82 0.5 0.56 0.05-50 MGD 1.02 0.05-20 MGD 1.13 10-200 hp 0.69 50-4000 gal 0.74 Reactor 0.04-5 MGD 1.35 Sludge drying beds Stabilization pond 0.14 0.01-0.2 MGD 0.67 100-2000 gal Tank, stainless standard cubic feet per day. Note: MGD - million gallons per day; hp - horsepower, sefd matcu tolal piant Cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -270,000 -135,000 75,000 -245,000 -139,000 35,000 6. 6. matcu tolal piant Cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -270,000 -135,000 75,000 -245,000 -139,000 35,000 6. 6. 21034567 6. Determine the economic service life and corresponding AW value for a machine that has the following cash flow estimates. Use an interest rate of 14% per year and hand solution. (CHAPTER 11) Salvage Value, $ Operating Cost, $ per Year Year 100,000 75,000 60,000 50,000 40,000 -28,000 -31,000 -34,000 -34,000 -34,000 -45,000 -49,000 25,000 15,000 7. A chemical engineer is considering two sizes of pipes, small (S) and large (L), for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost. In writing the report, the engineer compared the alternatives based on future worth values, but the company president wants the costs expressed as present dollars. Determine present worth values if future worth values are FWs $2.3 million and FWT $2.5 million. The company uses a real interest rate of 1% per month and an inflation rate of 0.4% per month. Assume the future worth values were for a 10-year project period. (CHAPTER 14) Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis. (Use Excel) Annual Operating Cost, S per Year First Cost, $ Machine -31.000 29 ,000 34,500 49.000 -16,000 19,300 3 17,000 -12,200 15,500 4. 41.000 ABB purchased fieldbus communication equipment for a project in South Africa for 1. $3.15 million. The net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated regardless of when it is sold. Determine the number of years the equipment miust be used to obtain payback at MARR values of (a) 0% (start in year 4) and 8% per year (start in year 7). (CHAPTER 13). 2. Use the exponent values in Table 156 to estimate the cost for the following equipment to be placed on an offshore drilling platform. (CHAPTER 15) (a) The cost of a 125-hp centrifugal pump if a 200-hp pump costs $28,000. (b) The cost of a 1700-gallon stainless steel tank if a 900-gallon tank costs $4100. Sample Exponent Values for Cost-Capacity Equations TABLE 15-6 Component/System/Plant Size Range Exponent 1-100 MGD 0.2-40 MGD Activated sludge plant Aerobic digester 0.84 0.14 0.46 1000-7000 t/min 40-60 in 3000-350 D00 tons/year 0.1-100 MGD 5-300 hp Blower 0.71 Centrifuge Chlorine plant 0.4 0.98 Clarifier 0.90 Compressor, reciprocating (air service) R Focus kes, and improvements, choose Check for Updates. TABLE 15-6 Sample Exponent Values for Cost-Capacity Equations Component/System/Plant Size Range Exponent Activated sludge plant Aerobic digester Blower Centrifuge Chr ine plant Clarifier Compressor, reciprocating (air service) Compressor Cyclone separator Dryer Pilter, sand Heat exchanger lydrogen plant Laboratory Lagoon, aerated Pump, centrifugal Reactor Sludge drying beds Stabilization pond Cank, stainless 1-100 MGD 0.84 0.2-40 MGD 0.14 1000-7000 ft/min 0.46 40-60 in 0.71 3000-350 000 tons/year 0.44 0.1-100 MGD S-300 hp 200-2100 hp 20-8000 ft'/min 15-400 ft 0.98 0.90 0.32 0.64 0.71 05-200 MGD 0.82 500-3000 ft 0.55 500-20,000 sefd 0.05-50 MGD 0.56 1.02 0.05-20 MGD 10-200 hp 50-4000 gal 1.13 0.69 0.74 1.35 0.04-5 MGD 0.14 0.01-0.2 MGD 0.67 100-2000 gal standard cubic feet per day. million gallons per day: hp horsepower; sefd Wote: MGD 3. A consulting engineering firm is preparing a preliminary cost estimate for a design- construct project of a coal processing plant. The firm, which completed a similar project in 2001 with a construction cost of $30 million, wants to use the ENR construction cost index to update the cost. Use the values in Table 15-3 to estimate the cost of construction for a similar-size plant in mid-2010. (From Table 15-3, index value in 2001 = 6343; index value in mid-2010 = 8837) (CHAPTER 15). 4. The equipment cost for a 10-gallon per minute farm-scale ethanol fuel production plant is $243,000. The direct cost factor for construction is 1.28 and for installation is 0.23. The indirect cost factor for licenses, insurance, etc. is 0.84 (applied to total direct cost). Determine the estimated total plant cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Focus plant cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -245,000 -139,000 35,000 -270,000 -135,000 75,000 6. 6. plant cost. (CHAPTER 15). 5. Hewett Electronics manufactures amplified pressure transducers. It must decide between two machines for a finishing operation. Select one for them on the basis of AW-based rate of return analysis. The company's MARR is 18% per year. (Start at 20%) (CHAPTER 8) Variable Dual Speed Speed First cost, $ Annual operating cost, $ per year Salvage value, $ Life, years -245,000 -139,000 35,000 -270,000 -135,000 75,000 6. 6. 6. Determine the economic service life and corresponding AW value for a machine that has the following cash flow estimates. Use an interest rate of 14% per year and hand solution. (CHAPTER 11) Salvage Value, $ Operating Cost, $ per Year Year 100,000 75,000 60,000 50,000 40,000 25,000 15,000 -28,000 -31,000 -34,000 -34,000 -34,000 -45,000 -49,000 11234567 7. A chemical engineer is considering two sizes of pipes, small (S) and large (L), for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost. In writing the report, the engineer compared the alternatives based on future worth values, but the company president wants the costs expressed as present dollars. Determine present worth values if future worth values are FWs $2.3 million and FWT $2.5 million. The company uses a real interest rate of 1% per month and an inflation rate of 0.4% per month. Assume the future worth values were for a 10-year project period. (CHAPTER 14) Solve the following problems. Show all your work to receive credit. 1. Ashley Foods, Inc. has determined that any one of five machines can be used in one phase of its chili canning operation. The costs of the machines are estimated below, and all machines are estimated to have a 4-year useful life. If the minimum attractive rate of return is 20% per year, determine which machine should be selected on the basis of a rate of return analysis. (Use Excel) Annual Operating Cost, S per Year Machine First Cost, $ -31.000 29 000 34,500 49.000 -16,000 19,300 3 17,000 -12,200 15,500 4. 41.000
