In an effort to reduce pipe breakage, water hammer, and product agitation, a French chemical company plans to install several chemically resistant pulsation dampeners. The cost of the dampeners today is €106,000, but the chemical company has to wait until a permit is approved for its bidirectional port-to-plant product pipeline. The permit approval process will take at least 2 years because of the time required for preparation of an environmental impact statement. Because of intense foreign competition, the manufacturer plans to increase the price only by the inflation rate of 3% each year. Determine the cost of the dampeners in 2 years in terms of (a) then-current euros, and (b) constant-value euros.
In an effort to reduce pipe breakage, water hammer,
and product agitation, a French chemical
company plans to install several chemically resistant
pulsation dampeners. The cost of the dampeners
today is €106,000, but the chemical company
has to wait until a permit is approved for its bidirectional
port-to-plant product pipeline. The permit
approval process will take at least 2 years because
of the time required for preparation of an
environmental impact statement. Because of intense
foreign competition, the manufacturer plans
to increase the price only by the inflation rate of
3% each year. Determine the cost of the dampeners
in 2 years in terms of (a) then-current euros, and
(b) constant-value euros.
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