An oil company is being offered a special coating for the underground gasoline tank installation in its service stations which will increase the life of the tank from the usual 10 years to 15 years. The cost of the special coating will increase the cost if the P40,000- tank to P58,000. Cost of installation for either of tanks is P24,000. If salvage value of for both is zero, and interest rate is 26%, would you recommend the use of the special coating? Ans. The special coating should not be used.

Solid Waste Engineering
3rd Edition
ISBN:9781305635203
Author:Worrell, William A.
Publisher:Worrell, William A.
Chapter5: Separation Processes
Section: Chapter Questions
Problem 5.14P: Two materials, A and B, are to be separated using two unit operations, 1 and 2. The feed has 10...
icon
Related questions
Question
100%

"Economics"

A subject from civil engineering

Please help me solve this problem

 

An oil company is being offered a special coating for the underground gasoline tank
installation in its service stations which will increase the life of the tank from the usual
10 years to 15 years. The cost of the special coating will increase the cost if the P40,000-
tank to P58,000. Cost of installation for either of tanks is P24,000. If salvage value of for
both is zero, and interest rate is 26%, would you recommend the use of the special
coating?
Ans. The special coating should not be used.
alo in tho
Transcribed Image Text:An oil company is being offered a special coating for the underground gasoline tank installation in its service stations which will increase the life of the tank from the usual 10 years to 15 years. The cost of the special coating will increase the cost if the P40,000- tank to P58,000. Cost of installation for either of tanks is P24,000. If salvage value of for both is zero, and interest rate is 26%, would you recommend the use of the special coating? Ans. The special coating should not be used. alo in tho
Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Unit conversion
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, civil-engineering and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Solid Waste Engineering
Solid Waste Engineering
Civil Engineering
ISBN:
9781305635203
Author:
Worrell, William A.
Publisher:
Cengage Learning,