Question: Question 5 (8 points) ng to install a new pipeline to connect storage tanks to a processing 120 mm and 180 mm diameter pipes are
Question 5 (8 points) ng to install a new pipeline to connect storage tanks to a processing 120 mm and 180 mm diameter pipes are being considered. The An oil com plant 1500 m away. Both tollowing table:ded quarterly. Relevant data for the two alternatives are given in the 150mm diameter pipe 120 mm diameter pipe $2500 6 years S300 $3500 5 years $70 $0.013 Salvage value uarterly maintenance$80 Pump cost per hour-meter $0.014 Pump operation 200 hours/year200 hours/vear (3 points a- Calculate the capital recovery for each alternative? b- Which alternative should be selected? (5 points Question 5 (8 points) ng to install a new pipeline to connect storage tanks to a processing 120 mm and 180 mm diameter pipes are being considered. The An oil com plant 1500 m away. Both tollowing table:ded quarterly. Relevant data for the two alternatives are given in the 150mm diameter pipe 120 mm diameter pipe $2500 6 years S300 $3500 5 years $70 $0.013 Salvage value uarterly maintenance$80 Pump cost per hour-meter $0.014 Pump operation 200 hours/year200 hours/vear (3 points a- Calculate the capital recovery for each alternative? b- Which alternative should be selected? (5 points
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