Question

37. A condenser using refrigerated water is being considered for the recovery of a solvent used in a pharmaceutical coating operation. The amount of solvent recovered from the gas stream is a function of the temperature to which it is cooled. Three cases, each using a different exchanger and a different amount of refrigerated water, are to be considered. Data for the process cases are given in the table. CaseInstalled Cost of Exchanger (S)Cost of Refrigerated Water (S/y) Value of Acetone Recovered (S/y) A 103,700 32,500 15,000 65,000 74,750 30,000 B 162,400 34,500 216,100 C If the nondiscounted hurdle rate for projects is set at 15 % p.a., which case do you recommend? If the discounted hurdle rate is set at 5 % p.a. and the project life is set at 7 years, which case do you recommend? How does your result from Part (b) change if the project life were changed to 15 years? How does your result from Part (b) change if the project life were changed to 5 years?

Answer 1

Solution;

Given that;

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