Question: Application - Two condensers Ferrous Life 6 years Capital & replacement cost $4000 Operating cost $250 pa Copper Life 9 years Capital & replacement cost

Application - Two condensers Ferrous Life 6 years Capital & replacement cost $4000 Operating cost $250 pa Copper Life 9 years Capital & replacement cost $4750 Operating cost $200 pa Assume that Salvage value nil Study period 18 years Discount rate = 8% pa with no inflation Which design should be chosen on a minimum present value of life cycle cost criterion

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