Determine the engineering economy symbols and their value

Assignment Help Business Economics

Reference no: EM133401470

Case Study: Saltine Chemical Inc. plan to build a chemical plant in Nassau, Bahamas, for the production of Iodized Salt and other industrial based salts. Saltine will spend $0.05 billion in constructing the plant at the onset and $835000 in annual maintenance and operating cost for the subsequent years of operation. A complete overhaul of the plant will be carrying out at the end of year 6 and 8 at an extra cost of $148200 and 132005 respectively. Saltine intends to run the project for 12 years before they sell the plant to an indigenous chemical company at a salvage price calculated based on the following equation: Salvage = Initial cost (1-0.10)" , where n is the number of years of operation Considering an interest rate of 10% per year;

Questions:

a) Determine the engineering economy symbols and their value for each option

b) Draw the Cash flow diagram for the estimates

c) Calculate the Present Worth of the project

Reference no: EM133401470

Questions Cloud

Explain why the price of electricity has increased : how markets work illustrate and explain why the price of electricity has increased so much over the past 18 months throughout the EU. You should consider

Create two behavior modification techniques : Create two behavior modification techniques for long-term maintenance. One technique needs to address exercise adherence and one needs to support healthy

Consider a second price auction for a single item : Consider a second price auction for a single item with two bidders. Suppose the bidders have independent private values, uniformly drawn in the interval

Discuss the need for experimentation in physiology : Discuss the need for experimentation in physiology and how implementation of appropriate variables and controls may lead researchers to valid conclusions

Determine the engineering economy symbols and their value : Determine the engineering economy symbols and their value for each option Draw the Cash flow diagram for the estimates Calculate the Present Worth

Describe what a flow chart or process map is : Describe what a "flow chart" or "process map" is, and how it is used in explaining means by which the human body maintains homeostasis

What are the symptoms of temporal lobe damage : What are the symptoms of temporal lobe damage that occurs in the superior temporal sulcus? What about damage to area 41,42, and 22. Include different assessment

Different types of dialysis and how they are used : Research the medication Enalapril. Explain its uses, dosage, and side effects and Explain the different types of dialysis and how they are used

Explain how the airway passages protect the human body : Explain how the airway passages protect the human body from foreign debris, dust, and pathogens.

User Account

All Pages