EBK BASICS OF ENGINEERING ECONOMY
EBK BASICS OF ENGINEERING ECONOMY
2nd Edition
ISBN: 8220102797123
Author: Blank
Publisher: YUZU
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Chapter 3, Problem 64P
To determine

Calculate the annual worth.

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Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month (pump plus chemicals) at an interest rate of 1% per month. Assume 30 days per month and a 4-year pump life.
Western Refining purchased a model MTVS peristaltic pump for injecting antiscalant at its nanofiltration water conditioning plant. The cost of the pump was $1200. If the chemical cost is $11 per day, determine the equivalent cost per month at an interest rate pf 1% per month. Assume 30 days per month and a 4-year pump life.
A large water utility is planning to upgrade its SCADA system for controlling well pumps, booster pumps, and disinfection equipment for centralized monitoring and control. Phase I will reduce labor and travel costs by $28,000 per year. Phase II will reduce costs by an additional $20,000 per year, that is $48,000. If phase I savings occur in years 0, 1, 2, and 3 and phase II savings occur in years 4 through 10, what is the present worth of the upgraded system in years 1 to 10 at an interest rate of 8% per year?

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EBK BASICS OF ENGINEERING ECONOMY

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