Question: A contractor has been awarded a contract to develop a new drilling pipeline. As a part of the construction they need to draw waste water

 A contractor has been awarded a contract to develop a new

A contractor has been awarded a contract to develop a new drilling pipeline. As a part of the construction they need to draw waste water out of the pipeline and they are considering multiple alternatives with varied costs. The costs and pipe sizes are given below. 2 (in) 3 6 23,000 25,000 30,000 Installment cost $22,000 Cost per hour $1.20 of operation $0.65 $0.50 $0.40 The pipe will have no salvage value. It will be used for 5 years at a rate of 2000 hours per year. If the company uses an MARR of 7%. What pipe size should they choose

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