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TABLE P2.21 Pipeline Cost Data Parameter Initial cost Expected life Valve and fitting replacement in year 25 Annual operating and security cost Over Land Undersea $215M $350M 50 yr 50 yr $30M $70M $22M $2M

TABLE P2.21 Pipeline Cost Data Parameter Initial cost Expected life Valve and fitting replacement in year 25 Annual operating and security cost Over Land Undersea $215M $350M 50 yr 50 yr $30M $70M $22M $2M

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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A pipeline engineer is considering alternative natural gas pipeline routings. The first route is mostly over land and the second is primarily undersea. Both pipelines will need some valve and fitting replacements in year 25. Cost data for each route is shown in Table P2.21. Notice that the undersea route has a higher initial cost due to higher installation costs and extra corrosion protection for the pipeline. However, the undersea route has cheaper security and maintenance costs which substantially reduces annual costs. The MARR for the project is 15%. Determine which route should be pursued based on a present worth analysis.

TABLE P2.21 Pipeline Cost Data Parameter Initial cost Expected life Valve and fitting replacement in year 25 Annual operating and security cost Over Land Undersea $215M $350M 50 yr 50 yr $30M $70M $22M $2M
Transcribed Image Text:TABLE P2.21 Pipeline Cost Data Parameter Initial cost Expected life Valve and fitting replacement in year 25 Annual operating and security cost Over Land Undersea $215M $350M 50 yr 50 yr $30M $70M $22M $2M
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