A new oil pump costs $7,500 and has no salvage value once installed. The manufacturer's warranty...
A new oil pump costs $7,500 and has no salvage value once installed. The manufacturer's warranty will pay the 1st year maintenance and repair costs. In the 2nd year, costs will be $900, and they will increase on a $700 arithmetic gradient in subsequent years. Also operating expenses for the pump will be $500 the first year and will increase on a $200 arithmetic gradient in the following years. If interest rate is 8%, compute the pump's equivalent annual cost in its 4th year of operation
Homework Answers
Add Answer to:
A new oil pump costs $7,500 and has no salvage value once
installed. The manufacturer's warranty...
Economics question, show steps and be clear solve in 30 minutes for thumbs up rating A...
Economics question, show steps and be clear
solve in 30 minutes for thumbs up rating
A new oil pump costs $8,500 and has no salvage value once installed. The manufacturer's warranty will pay the 1st year maintenance and repair costs. In the 2nd year, costs will be $900, and they will increase on a $900 arithmetic gradient in subsequent years. Also operating expenses for the pump will be $500 the first year and will increase on a $200 arithmetic gradient...
3. A machine tool costs $10,000 and does not have any salvage value. The manufacturer's warranty...
3. A machine tool costs $10,000 and does not have any salvage value. The manufacturer's warranty covers the maintenance and repair cost for the first year. The maintenance and repair costs for the second year will be $1,000 and will increase for $500 for the subsequent years. The operating costs for the first year will be $400 and will increase for $400 for the subsequent years. Consider an analysis period of 8 years and interest rate of 9%, and find...
1. A new pipeline is installed. Annual maintenance and pumping costs are considered to be paid in...
1. A new pipeline is installed. Annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred (assume that maintenance happens in year 10). The pipe has the following costs and properties: Initial cost $7,500 Annual interest rate 5% Service life 10 years Salvage value $500 Annual maintenance $500 Pump cost/hour $2.75 Pump operation 2000 hours/year What is the equivalent uniform annual cost (EUAC) of the pipe?
Case 27 To Use or Not to Use? Beaufort Sea Production Company (BSPC) operates a medium-sized...
Case 27 To Use or Not to Use?
Beaufort Sea Production Company (BSPC) operates a medium-sized oil
field on Alaska’s north coast. The field is still producing at its
maximum rate, 325,000 barrels of oil per day (BOPD). However, to
sustain this rate the company started a waterflood of the reservoir
two years ago. Now a capacity bottleneck in the water disposal
process is threatening to curtail production. In waterflooding,
salt water from the Beaufort Sea is treated to remove...
10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated...
10. Write a one-page summary of the attached paper? INTRODUCTION Many problems can develop in activated sludge operation that adversely affect effluent quality with origins in the engineering, hydraulic and microbiological components of the process. The real "heart" of the activated sludge system is the development and maintenance of a mixed microbial culture (activated sludge) that treats wastewater and which can be managed. One definition of a wastewater treatment plant operator is a "bug farmer", one who controls the aeration...
Economics question, show steps and be clear
solve in 30 minutes for thumbs up rating
A new oil pump costs $8,500 and has no salvage value once installed. The manufacturer's warranty will pay the 1st year maintenance and repair costs. In the 2nd year, costs will be $900, and they will increase on a $900 arithmetic gradient in subsequent years. Also operating expenses for the pump will be $500 the first year and will increase on a $200 arithmetic gradient...
3. A machine tool costs $10,000 and does not have any salvage value. The manufacturer's warranty covers the maintenance and repair cost for the first year. The maintenance and repair costs for the second year will be $1,000 and will increase for $500 for the subsequent years. The operating costs for the first year will be $400 and will increase for $400 for the subsequent years. Consider an analysis period of 8 years and interest rate of 9%, and find...
Case 27 To Use or Not to Use?
Beaufort Sea Production Company (BSPC) operates a medium-sized oil
field on Alaska’s north coast. The field is still producing at its
maximum rate, 325,000 barrels of oil per day (BOPD). However, to
sustain this rate the company started a waterflood of the reservoir
two years ago. Now a capacity bottleneck in the water disposal
process is threatening to curtail production. In waterflooding,
salt water from the Beaufort Sea is treated to remove...
Most questions answered within 3 hours.
-
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 31 minutes ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 32 minutes ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 1 hour ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 2 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 4 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 4 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 4 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 4 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 4 hours ago -
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 4 hours ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 4 hours ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 4 hours ago