Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save? Option First Cost Salvage Life 1 2 $15 M $20 M O&M Cost/Year $5 M $3 M $4 M $6 M 10 years 20 years

Which process line should be built for a new chemical? The expected market for the chemical is 20 years. A 6% rate is used to evaluate new process facilities, which are compared with present worth. How much does the better choice save? Option First Cost Salvage Life 1 2 $15 M $20 M O&M Cost/Year $5 M $3 M $4 M $6 M 10 years 20 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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MARR is 8.4 % 3500 4000 A500 5000 Year O 5500 6000 6500 7000 1000 1500 6000 22000 2000 5600 2500 3000 3500 5200 4800 4400 4000 8000 4000 4500 Find the present worth? 4000 5500 16 17 5200 4900 1800 4600 2000 2200 4300 4000 2400 2600 3000 4000 5000 6000 2800 3000 3200 salvage 2000 3400 3600
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