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Two types of heat exchangers (y and z) would like to compare the cost of use in a particular chemical industry. Type y costs DR 8.40 0.000 with a technical age of 6

Two types of heat exchangers (y and z) would like to compare the cost of use in a particular chemical industry. Type y costs DR 8.40 0.000 with a technical age of 6

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Two types of heat exchangers (y and z) would like to compare the cost of use in a particular chemical industry. Type y costs IDR 8,400,000 with a technical age of 6 years and a final value of 0 and an annual operating cost of IDR 1,700,000. Type z costs IDR 10,000,000 with a technical life of 9 years and an annual operating cost of IDR 1,500,000. If type z is selected then there is an extra tax which is estimated at IDR 200,000 per year, compare the EUAC of the two heat exchangers assuming an interest rate of 12%.
Transcribed Image Text:Two types of heat exchangers (y and z) would like to compare the cost of use in a particular chemical industry. Type y costs IDR 8,400,000 with a technical age of 6 years and a final value of 0 and an annual operating cost of IDR 1,700,000. Type z costs IDR 10,000,000 with a technical life of 9 years and an annual operating cost of IDR 1,500,000. If type z is selected then there is an extra tax which is estimated at IDR 200,000 per year, compare the EUAC of the two heat exchangers assuming an interest rate of 12%.
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