7. Two types of heat exchangers (y and z)would like to compare the cost of use in aparticular chemical industry. Type y costsIDR 8,400,000 with a technical age of 6years and a final value of 0 and an annualoperating cost of IDR 1,700,000. Type zcosts IDR 10,000,000 with a technical life of9 years and an annual operating cost of IDR1,500,000. If type z is selected then there isan extra tax which is estimated at IDR200,000 per year, compare the EUAC ofthe two heat exchangers assuming aninterest rate of 12%.

EUAC is uniform equivalent annual cost which is equivalent all cost including the cost of…

9 years and an annual operating cost of IDE 1,500,000. If type z is selected then there is an extra tax which is estimated at IDR 200,000 per year, compare the EUAC of the two heat exchangers assuming an interest rate of 12%.

9 years and an annual operating cost of IDE 1,500,000. If type z is selected then there is an extra tax which is estimated at IDR 200,000 per year, compare the EUAC of the two heat exchangers assuming an interest rate of 12%.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Two types of heat exchangers (y and z)
would like to compare the cost of use in a
particular chemical industry. Type y costs
IDR 8,400,000 with a technical age of 6
years and a final value of 0 and an annual
operating cost of IDR 1,700,000. Type z
costs IDR 10,000,000 with a technical life of
9 years and an annual operating cost of IDR
1,500,000. If type z is selected then there is
an extra tax which is estimated at IDR
200,000 per year, compare the EUAC of
the two heat exchangers assuming an
interest rate of 12%.

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