7-6 A new storage tank can be purchased and installed for $10,000. The estimated service life of this tank is 10 years. It has been proposed that an available tank with the capacity equivalent to the new tank be used instead of buying the new tank. If the latter tank were repaired, it would have a service life of 3 years before similar repairs would be needed again. Neither tank has any scrap value. Money is worth 6 percent compounded annually. On the basis of equal capitalized costs for the two tanks, how much can be spent for repairing the existing tank? See Prob. 7-4 for a definition of capitalized cost.
7-6 A new storage tank can be purchased and installed for $10,000. The estimated service life of this tank is 10 years. It has been proposed that an available tank with the capacity equivalent to the new tank be used instead of buying the new tank. If the latter tank were repaired, it would have a service life of 3 years before similar repairs would be needed again. Neither tank has any scrap value. Money is worth 6 percent compounded annually. On the basis of equal capitalized costs for the two tanks, how much can be spent for repairing the existing tank? See Prob. 7-4 for a definition of capitalized cost.
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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Transcribed Image Text:1
7-6
A new storage tank can be purchased and installed for $10,000. The estimated service life of
this tank is 10 years. It has been proposed that an available tank with the capacity equivalent
to the new tank be used instead of buying the new tank. If the latter tank were repaired, it
would have a service life of 3 years before similar repairs would be needed again. Neither
tank has any scrap value. Money is worth 6 percent compounded annually. On the basis of
equal capitalized costs for the two tanks, how much can be spent for repairing the existing
tank? See Prob. 7-4 for a definition of capitalized cost.
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