New 200 mm diameter pipeline is installed over a distance of 1000 m. Annual maintenance and...

 

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New 200 mm diameter pipeline is installed over a distance of 1000 m. Annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred. The pipe has the following costs and properties. initial cost annual interest rate service life salvage value annual maintenance pump cost/hour pump operation $1350 6% 6 yr $120 $500 $2.75 2003 hr/yr What is most nearly the equivalent uniform annual cost (EUAC) of the pipe? (A) $5700 (B) $5900 (C) $6100 (D) $6300 New 200 mm diameter pipeline is installed over a distance of 1000 m. Annual maintenance and pumping costs are considered to be paid in their entireties at the end of the years in which their costs are incurred. The pipe has the following costs and properties. initial cost annual interest rate service life salvage value annual maintenance pump cost/hour pump operation $1350 6% 6 yr $120 $500 $2.75 2003 hr/yr What is most nearly the equivalent uniform annual cost (EUAC) of the pipe? (A) $5700 (B) $5900 (C) $6100 (D) $6300

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