The cost of a high-quality 250-horsepower compressor was $9500 when recently purchased. What would a 450-horsepower compressor be expectedto cost if the exponent in the cost-capacity equation has a value of 0.32?
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The cost of a high-quality 250-horsepower compressor was $9500 when recently purchased. What would a 450-horsepower compressor be expected
to cost if the exponent in the cost-capacity equation has a value of 0.32?
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- The estimated cost of a completely installed andready-to-operate 40-kilowatt generator is $32,000. Itsannual maintenance costs are estimated at $800. Theenergy that can be generated annually at full load isestimated to be 100,000 kilowatt-hours. If the valueof the energy generated is $0.09 per kilowatt-hour,how long will it take before this machine becomesprofitable? Take the MARR to be 10% and the salvage value of the machine to be $2,000 at the end ofits estimated life of 15 years.A motor with a 200-horsepower output is needed in the factory for intermittent use. A Graybar motor costs $7000 and has an electrical efficiency of 90%. A Blueball motor costs $6000 and has an 85% efficiency. Neither motor would have any salvage value, since the cost to remove it would equal its scrap value. The annual maintenance cost for either motor is estimated at $500 per year. Electric power costs $0.12/kWh (1 hp = 0.746 kW). If an 18% interest rate is used in the calculations, what is the minimum number of hours the higher initial cost Graybar motor must be used each year to justify its purchase?If the air-conditioning system for a 200,000 ft2 building is estimated to be 400 ft2 per ton and to cost $4000 per ton, then what will be the system cost? And If, through load management, the system capacity for the building in above problem is reduced by 10%, will the system cost be reduced by 10%? If not, why?
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- A large induced-draft fan is needed for an upgraded industrial process. The motor to drive this fan is rated at 100 horsepower, and the motor will operate at full load for 8,760 hours per year. The motor’s efficiency is 92%. Because the motor is fairly large, a demand charge of $92 per kilowatt per year will beincurred in addition to an energy charge of $0.08 per kilowatt-hour. If the installed cost of the motor is $4,000, what is the present worth of the motor over a 10-year period when the MARR is 15% per year?It is estimated that insulation of steam pipes in a factory will reduce fuel bill by as much as 20%. The cost of insulation is P9,000 and the cost of taxes and insurance is 5% of the initial cost. Without the insulation, the annual fuel bill is P18,000. If the insulation is worthless after 6 years and a minimum of 12% is desired, would it be worthwhile to invest in the insulation?A plant's Product Engineering Department is trying to calculate the Uniform Equivalent Annual Cost of a projected machine. It is estimated that the cost of designing and building the machine will be $720,000, its useful life is estimated at 7 years with a salvage value of $70,000, but these estimates are subject to error. A 6-year lifespan with a salvage value of $80,000 and an 8-year lifespan with a salvage value of $60,000 are also possible. If the attractive minimum rate of return is 10% per year, analyze the sensitivity of the Uniform Equivalent Annual Cost to the change in estimates.
- MKM International is seeking to purchase a new CNC machine in order to reduce costs. Two alternative machines are in consideration. Machine 1 costs $450,000, but yields a 15 percent savings over the current machine used. Machine 2 costs $800,000, but yields a 25 percent savings over the current machine used. In order to meet demand, the following forecasted cost information for the current machine is also provided. LOADING... Year Project Cost 1 1,000,000 2 1,350,000 3 1,450,000 4 1,550,000 5 2,550,000 a. Based on the NPV of the cash flows for these 5 years, which machine should MKM International purchase? Assume a discount rate of 12 percent. Assuming a discount rate of 12 percent, MKM International should purchase ▼ machine 1 or machine 2 because the NPV of machine 1 is $------ and the NPV of machine 2 is $--------. (Enter your responses…A company decides to purchase an industrial gas turbine which costs forty thousand. Additional costs of 14,000 incurred for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The turbine has an AOC of 450 plus fuel expense of 7.50/hour. The new model is claimed to use less resources which led to an annual savings of 45000. If the engine is set to operate for 3000 hours per year, what is the annual equivalent life-cycle cost of the gas turbine given that the MARR = 15%. Cost of dismantling and disposing of the turbine at the end of its 8-year life is 8,000?An electronics firm is currently manufacturing anitem that has a va riable cost of $.50 per unit and a selling priceof $1.00 per unit. Fixed costs are $14,000. Current volume is30,000 units. The firm can substantially improve the productquality by adding a new piece of equipment at an additional fixedcost of $6,000. Variable cost would increase to $.60, but volumeshould jump to 50,000 units due to a higher-quality product.Should the company buy the new equipment?