Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first cost of $100,000 and an AOC of $60,000 per year. Process B’s first cost is $165,000. If both process will be adequate for 4 years and the rate of return on the increment between the alternatives is 25%, what is the amount of the AOC for process B?
Lesco Chemical is considering two processes for making a cationic polymer. Process A has a first cost of $100,000 and an AOC of $60,000 per year. Process B’s first cost is $165,000. If both process will be adequate for 4 years and the rate of return on the increment between the alternatives is 25%, what is the amount of the AOC for process B?
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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Lesco Chemical is considering two processes for
making a cationic polymer. Process A has a first
cost of $100,000 and an AOC of $60,000 per year.
Process B’s first cost is $165,000. If both process
will be adequate for 4 years and the rate of return
on the increment between the alternatives is 25%,
what is the amount of the AOC for process B?
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