A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth
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A pipeline engineer working in Kuwait for the oil giant BP wants to perform a present worth analysis on alternative pipeline routings-the first predominately by land and the second primarily undersea. The undersea route is more expensive initially due to extra corrosion protection and installation costs, but cheaper security and maintenance reduces annual costs. Perform the analysis for the engineer at 15% peryear.
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Land Undersea -215 350 Installation cost, Sillion Pumping, operating, security, -22 S millonper year Replacement of valves and -30-70 appurtenances in year 25, S million Expected life, years 50 50
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In million units PW Land 215 22PA 15 50 30PF 15 2...View the full answer
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