while:

I=14000

J=17000

K=24000

L=36000

M=26%

Q2. To recover the waste heat from the processed fluid, a chemical industry planned to invest in a heat exchanger. Company has 4 investment options namely HET, HE2, HE3 & HE4. Company expected at least M % annual return before taxes based on the purchased cost. HE 1 HE 2 HE 3 HE4 Purchased Cost (OMR) - J K L Maintenance Cost 18 20 25 22 (as % of purchased cost) Operation Cost (OMR) Energy Saving (OMR) 4500 6000 8000 9000 12000 15000 18000 25000 QEAD Rev.03 ver 01 on July 2017 Template A 2 F/QAP/021/001 Suggest the suitable heat exchanger to the company based on the following methods. Justify the statement. a) Incremental investment returns method b) Minimum return as a cost method [20 Marks]