Accurate airflow measurement requires straight unobstructed pipe for a minimum of 10 diameters upstream and 5 diameters

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Accurate airflow measurement requires straight unobstructed pipe for a minimum of 10 diameters upstream and 5 diameters downstream of the measuring device. In a field application, physical constraints compromise the pipe layout, so the engineer is considering installing the airflow probes in an elbow, knowing that flow measurement will be less accurate but good enough for process control. This is plan 1, which will be in place for only 3 years, after which a more accurate flow measurement system with the same costs as plan 1 will be available. This plan will have a first cost of $26,000 with an annual maintenance cost estimated at $5000. Plan 2 involves installation of a recently designed submersible airflow probe. The stainless steel probe can be installed in a drop pipe with the transmitter located in a waterproof enclosure on the handrail. The first cost of this system is $83,000, but because it is accurate and more durable, it will not have to be replaced for at least 6 years. Its maintenance cost is estimated to be $1400 per year plus $2500 in year 3 for replacement of signal processing software. Neither system will have a salvage value. At an interest rate of 10% per year, which one should be selected on the basis of a present worth comparison?


Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
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Engineering economy

ISBN: 978-0073376301

7th Edition

Authors: Leland Blank, Anthony Tarquin

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