The following data shows the different sizes of pipes which a company wishes to use as a replacement for the old pipe system that they are using Diameter 100mm Cost of Pipe-P1800000 Annual Maintenance Cost-P88000 Operating cost/hour=P480 Diameter 150mm Cost of Pipe-Pl 120000 Annual Maintenance Cost-Pl 36000 Operating cost/hour=P500 Diameter 250mm Cost of Pipe-Pl 000000 Annual Maintenance Cost-P60000 Operating cost/hour=P620 Total number of operating hours per year 500 Replacement is done every 1 0 years Money is worth 10% annually. Compute the equivalent annual cost of the 100mm pipe

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A: Annual worth or AW is referred to as the easy way of understanding the annual amount, for instance,…

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A: *Answer:

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A: The time period is indicated by ‘n’ and MARR is indicated by ‘i’.

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A: Equivalent annual cost (AEC) can be calculated by using the following formula.

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A:

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A:

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Q: e following data shows the different sizes of pipes which a company wishes to use as a replacement…

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A:

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A: *Answer:

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Q: Define replacement analysis

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A: Equivalent annual cost (AEC) can be calculated by using the following formula.

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