An ash disposal system of a steam plant cost $30,000 when new. It is now 4 years old. The annual maintenance costs for t
Posted: Fri May 27, 2022 7:14 am
An ash disposal system of a steam plant cost $30,000 when new.
It is now 4 years old. The
annual maintenance costs for the four years have been $2000, $2250,
$2675, $3000.
Interest rate = 6%. A new system is guaranteed to have an equated
annual maintenance and
operation cost not exceeding $1500. Its cost is $47,000 installed.
Life of each system, 7
years; salvage value, 5% of the first cost. Present sale value of
old system is same as salvage
value. Would it be profitable to install the new system?
It is now 4 years old. The
annual maintenance costs for the four years have been $2000, $2250,
$2675, $3000.
Interest rate = 6%. A new system is guaranteed to have an equated
annual maintenance and
operation cost not exceeding $1500. Its cost is $47,000 installed.
Life of each system, 7
years; salvage value, 5% of the first cost. Present sale value of
old system is same as salvage
value. Would it be profitable to install the new system?