General equation for estimating annual pumping costs

Assignment Help Financial Management

Reference no: EM131955892

"All industrial facilities have a network of piping that carries water or other liquids. According to a U.S. Department of Energy study, 16% of a typical facility's electricity costs are for its pumping systems. Suppose that you are considering a pumping facility having 11,000 ft to carry 550 gpm of water continuously to storage tank. The general equation for estimating annual pumping costs is

Cost($)= [(Friction factor)(Pipe length in ft)(Number of hours)($/kWh)(Flow in gpm)^3]/[1705*(Combined pump and motor efficiency)(Pipe inner diameter in inches)^5]

Where the friction factor is 0.0058. The electricity cost is $0.06/kWh, the pumping system operates for 7,770 hours annually, and the combined pump and motor efficiency is 0.7. The price for 11,000 feet of steel pipe is $11,000 per inch of the inner diameter. Determine the optimal size of the pipe's inner diameter in inches by minimizing the annual equivalent cost. Assume that the pumping operation will last 18 years, the salvage value of the pipe is 8% of the initial investment, and a discount rate of 12%."

Reference no: EM131955892

Questions Cloud

Find the average speed at which its height would decrease : Find the average speed at which its height would decrease, assuming the flagpole reacted instantaneously to the changing temperature.

How much money must save each month : How much money must he save each month to achieve his retirement goal under each of the three return rates?

Calculate the gross profit ratio for the month of march : Prepare a multiple-step income statement for the month ended March 31, 2018. Calculate the gross profit ratio for the month of March.

Describe the holding environment in this case : How do you define the problem the editors were trying to address? Was this a technical or an adaptive challenge?

General equation for estimating annual pumping costs : The general equation for estimating annual pumping costs is

Calculate npv and irr for the yogart stand : Calculate NPV and IRR for the following yogart stand in Seattle. Init Outflow = $3000 and CF1 = $4000. Use a required rate of return of 10%.

What is the resulting acceleration of the earth : What is the gravitational force between him and the earth? With this force, what is the resulting acceleration of the earth due to the person's pull?

How do the leaders of southwest airlines serve others : A young mother traveling with a toddler on a long cross-country flight approached the flight attendant looking rather frantic.

Spent on purchasing the new injection-moulding machine : what is the maximum amount that should be spent on purchasing the new injection-moulding machine?"

User Account

All Pages