5 A chemical plant is considering installing a new water purification system that costs $X. The expected life is A years and the salvage value is computed using the declining-balance method with a depreciation rate of B%. The operating costs are estimated at $Y per hour of operation. The expected savings are $Z per operating hour. MARR = X= Y= Z= A= B= C= 10% $15,300 $5 per hour $15 per hour 5 years 10% 1500 hours What is the salvage value at the end of A years? Try Again

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5 A chemical plant is considering installing a new water purification system that costs $X.
The expected life is A years and the salvage value is computed using the declining-balance method
with a depreciation rate of B%.
The operating costs are estimated at $Y per hour of operation. The expected savings are $Z per
operating hour.
MARR =
X=
Y=
Z=
A=
B=
C=
10%
$15,300
$5 per hour
$15 per hour
5 years
10%
1500 hours
What is the salvage value at the end of A years?
Try Again
What is the annual worth of the new system if the current operating hours are C per year on average?
Try Again
What is the break-even level of operating hours?
Try Again
Transcribed Image Text:5 A chemical plant is considering installing a new water purification system that costs $X. The expected life is A years and the salvage value is computed using the declining-balance method with a depreciation rate of B%. The operating costs are estimated at $Y per hour of operation. The expected savings are $Z per operating hour. MARR = X= Y= Z= A= B= C= 10% $15,300 $5 per hour $15 per hour 5 years 10% 1500 hours What is the salvage value at the end of A years? Try Again What is the annual worth of the new system if the current operating hours are C per year on average? Try Again What is the break-even level of operating hours? Try Again
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