Question

1. Analysis of cost for various pipe sizes is as follows:

       Select the best alternative below using Present Worth analysis. (Use Excel)

Installed Cost of Pipeline and Pump Cost per hour for pumping А. 22000 1.2 B 23000 0.65 C 25000 0.5 D 30000 0.4 The pump will operate 2000 hours per year Interest is 7%/year and Life is infinite

Answer 1

i istilled eest 2200 Cost per pour 1.2 yearly ast 2400 23,000 (25,000 30,000 0.65 05 Toy 11300 11000 1800 7.07 Pwg first year opearting wst = 2400 = 2242.9 Sum of for Pw of operation last to infinite - 2242.9 22429x107 – 34,284.3 1.07 0.07 Totalbest = 22,000+ 34, 284.3 = 56, 284.3 30 1.500 Por of first year upeanuting lost 150 =1214.9. Sum of Proof operating cost toinfinite 1214.9 81.07 1857 Total lost 18570.6 +23,000 240 0.07 934.5x1.07 = 14284.5 Pw of first year oc=1000 934.5 Sum gw of operating to infinite = 1 0.07 Total cost2/4284.5+25,000 = 39,284.5

(Date: Page No. D - Plugfirst year operation cost 900 = 747.6 Sumy pw of operating lost to inprite = 79.64 - 747.681-07 = 11,42722 Totalcost= 11;427.6+30,000 = 41,427.6 The best Alternative is C, with minimum Lost 39,284.5..