Consider a piece of industrial equipment that has an installed cost of $ 100,000. The equipment is expected to generate $30,000 worth of annual energy saving during its 1st year of installation. The value of these annual savings is expected to increased at the rate at 5% per year because of increased fuel costs. Assumes that the equipment has a service life of 5 years ( or 3000 operating hrs per year) with no appreciable salvage value. Determine the equivalent and savings per each operating hours at i=14%.
Consider a piece of industrial equipment that has an installed cost of $ 100,000. The equipment is expected to generate $30,000 worth of annual energy saving during its 1st year of installation. The value of these annual savings is expected to increased at the rate at 5% per year because of increased fuel costs. Assumes that the equipment has a service life of 5 years ( or 3000 operating hrs per year) with no appreciable salvage value. Determine the equivalent and savings per each operating hours at i=14%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Consider a piece of industrial equipment that has an installed cost of $ 100,000. The equipment is expected to generate $30,000 worth of annual energy saving during its 1st year of installation. The value of these annual savings is expected to increased at the rate at 5% per year because of increased fuel costs. Assumes that the equipment has a service life of 5 years ( or 3000 operating hrs per year) with no appreciable salvage value. Determine the equivalent and savings per each operating hours at i=14%.
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