Two membrane systems are under consideration for treating cooling tower blowdown to reduce its volume. A low-pressure seawater reverse osmosis (SWRO) system will operate at 500 psi and produce 720,000 gallons of permeate per day. It will have a fixed cost of $465 per day and an operating cost of $485 per day. A higher-pressure SWRO system operating at 800 psi will produce 950,000 gallons per day at a cost of $1280 per day. The fixed cost of the high-pressure SWRO system will be only $328 per day because fewer membranes will be required. How many gallons of blowdown water will require treatment each day for the two systems to break even?
Two membrane systems are under consideration for treating cooling tower blowdown to reduce its volume. A low-pressure seawater reverse osmosis (SWRO) system will operate at 500 psi and produce 720,000 gallons of permeate per day. It will have a fixed cost of $465 per day and an operating cost of $485 per day. A higher-pressure SWRO system operating at 800 psi will produce 950,000 gallons per day at a cost of $1280 per day. The fixed cost of the high-pressure SWRO system will be only $328 per day because fewer membranes will be required. How many gallons of blowdown water will require treatment each day for the two systems to break even?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 20P: The Aubey Coffee Company is evaluating the within-plant distribution system for its new roasting,...
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Two membrane systems are under consideration
for treating cooling tower blowdown to reduce its
volume. A low-pressure seawater reverse osmosis
(SWRO) system will operate at 500 psi and produce
720,000 gallons of permeate per day. It will
have a fixed cost of $465 per day and an operating
cost of $485 per day. A higher-pressure SWRO
system operating at 800 psi will produce 950,000
gallons per day at a cost of $1280 per day. The
fixed cost of the high-pressure SWRO system will
be only $328 per day because fewer membranes
will be required. How many gallons of blowdown
water will require treatment each day for the two
systems to break even?
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