The alternatives for an engineering project to recover most of the energy presently being lost in...
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The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as follows: Table 3: Table for Problem 4; all monetary amounts are given in $ 0 ER1 Design ER2 1 ved vers lliw doum -$ 98,600 +$ 25,800 -$115,000 +$ 29,000 ER3 +$ 81,200 +$ 19,750 2 (zining 21) Sta 3 =6% G = $150 A = $19,750 4 5 6 +$ 34,526 +$ 29,750 Note (a): After year 1 for ER1, the annual savings are estimated to increase at a growth rate of 6% per year. Note (b): After year 1 for ER2, the annual savings are estimated to increase uniformly by $150 per year Note (c): For ER3, there is a uniform sequence of annual savings of $19,750 per year +$ 19,750 Assume that the MARR is 12% per year, the study period is 6 years, and the market value is 0 for all three designs. Apply an incremental analysis method to determine the preferred alternative. The alternatives for an engineering project to recover most of the energy presently being lost in the primary cooling stage of a chemical processing system have been reduced to three designs. The estimated capital investment amounts and annual expense savings are as follows: Table 3: Table for Problem 4; all monetary amounts are given in $ 0 ER1 Design ER2 1 ved vers lliw doum -$ 98,600 +$ 25,800 -$115,000 +$ 29,000 ER3 +$ 81,200 +$ 19,750 2 (zining 21) Sta 3 =6% G = $150 A = $19,750 4 5 6 +$ 34,526 +$ 29,750 Note (a): After year 1 for ER1, the annual savings are estimated to increase at a growth rate of 6% per year. Note (b): After year 1 for ER2, the annual savings are estimated to increase uniformly by $150 per year Note (c): For ER3, there is a uniform sequence of annual savings of $19,750 per year +$ 19,750 Assume that the MARR is 12% per year, the study period is 6 years, and the market value is 0 for all three designs. Apply an incremental analysis method to determine the preferred alternative.
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