Engineering Economy
16th Edition
ISBN: 9780133582819
Author: Sullivan
Publisher: DGTL BNCOM
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Chapter 6, Problem 13P
The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as follows:
Assume that the MARR is 12% per year, the study period is six years, and the market value is zero for all three designs.
a After year one, the annual savings are estimated to increase at the rate of 6% per year.
b After year one, the annual savings are estimated to increase $150 per year.
c Uniform sequence of annual savings.
Apply an incremental analysis method to determine the preferred alternative. (6.4)
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Chapter 6 Solutions
Engineering Economy
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