Question

13-13 The Clap Chemical Company needs a large insulated stainless steel tank to expand its plant. Clap has located such a tank at a recently closed brewery. The brewery has offered to sell the tank for $15,000 delivered. The price is so low that Clap believes it can sell the tank at any future time and recover its $15,000 investment. The outside of the tank is covered with heavy insulation that requires considerable maintenance. Insulation Year Maintenance Cost $2000 500 1000 1500 2000 4 2500 (a) Based on a 15% before-tax MARR. what life of the insulated tank has the lowest EUAC? (b) Is it likely that the insulated tank will be replaced by another tank at the end of the period with the lowest EUAC? Explain

Answer 1

ANSWER:

Ca-stol the tank-$15,00 Third yiat maimtimamee coat $1,500 Foutth year maimtumand Cot $2,00o Capital. Recoup t lt -t15.00oCo.15) 2,25 3 800

0O0 事1,000 土41000 FIU ye (2) 44,220 こ 1,963 2000 1,500 $1000 ↑ $500

2000F (32 $20R0 2000 $1,500 $500

a:Pags no: Hax N rileti to mimimiza total EuAc maimtemamc um lharly hat thir will he ecomemical