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The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal clean air standards. Useful of life of 10 years, no
The Consolidated Oil Company must install antipollution equipment in a new refinery to meet federal clean air standards. Useful of life of 10 years, no market value, MARR=15%, analysis period 10 years. Which design should be selected. Use PW method.
Capital investment | Alternative Design | |||
D1 | D2 | D3 | D4 | |
-$600.000 | -$760.000 | -$1.240.000 | -$1.600.000 | |
Annual expenses: | ||||
Power | -68.000 | -68.000 | -120.000 | -126.000 |
Labor | -40.000 | -45.000 | -65.000 | -50.000 |
Maintenance | -660.000 | -600.000 | -420.000 | -370.000 |
Taxes and insurance | -12.000 | -15.000 | -25.000 | -28.000 |
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