Corrosion problems and manufacturing defects rendered a gasoline pipeline between El Paso, TX, and Phoenix, AZ, subject

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Corrosion problems and manufacturing defects rendered a gasoline pipeline between El Paso, TX, and Phoenix, AZ, subject to longitudinal weld seam failures. The pressure was reduced to 80% of the design value. If the reduced pressure resulted in delivery of less product valued at $100,000 per month, what will be the value of the lost revenue after a 2-year period at an interest rate of 15% per year, compounded continuously?

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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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