Using engineering economy formula

Three different types of four inch piping are under consideration by a petroleum engineer for use ina refinery. The three types of pipe are copper, thermoplastic and PVC pipe. List of cost and disbursement associated with installing and using these three types of pipe for this particular application. Determine which type of pipe would have the lowest equivalent uniform annual cost using an interest rate of 6%.

Cost of DisbursementCopperThermoplastic PipePVC pipe

Initial cost of piping$203/foot$160/foot$171/foot

and fitting joints

Installation cost$240/foot$180/foot$162/foot

O & M cost$40,000/year$90,000/year$70,000/year

Repairs$100,000 every$250,000 every$300,000 every

2 years15 years0 years

Salvage value$90/foot$50/foot$60/foot

Number of feet required4,000 ft4,000 ft4,000 feet

Life in years1006070