What is the economic life of the pipe

Assignment Help Business Economics
Reference no: EM131810495

A chemical process in your plant leaves scale deposits on the inside of pipes. The scale cannot be removed, but increasing the pumping pressure maintains flow through the narrower diameter. The pipe costs $25 per foot to install, and it has no salvage value when it is removed. The pumping costs are $8.50 per foot of pipe initially, and they increase annually by $6 per year starting in Year 2. What is the economic life of the pipe if the interest rate is 15%?

Reference no: EM131810495

Questions Cloud

What is the optimal ownership policy : In Year 3 it jumps to $600 and increases $50 per year thereafter. What is the optimal ownership policy?
What is the most important quality of a good leader and why : What is the most important quality of a 'good leader' and Why? Honest - wise leaders are not afraid of communicating the truth to their people
Find the break-even quantity : If the requirement is 150,000 units, is it more cost-effective for the firm to buy or make the components? What is the cost savings for choosing the cheaper ?
Determine the economic life of the press : The salvage value is expected to decrease by $25,000 each yearto a value of zero. Using an interest rate of 8%, determine the economic life of the press.
What is the economic life of the pipe : The pumping costs are $8.50 per foot of pipe initially, and they increase annually by $6 per year starting in Year 2. What is the economic life of the pipe
Determine the pump economic life : The pump's end-of-year salvage values over the next 5 years are $42K, $40K, $38K, $32K, and $26K. Determine the pump's economic life.
Estimate production and materials requirements : What production level next year will be required to meet the targets
What is its economic life if its salvage values : The installation cost is $8K, and removal costs are insignificant. What is its economic life if its salvage values and O&M costs are as follows?
Future annual maintenance costs : Future annual maintenance costs are expected to be higher. What is the economic life of this machine tool if it is kept in service?

Reviews

Write a Review

Business Economics Questions & Answers

  Demand schedule for belgium cocoa

Illustrate what is the demand schedule for Belgium cocoa beans now which U.S. consumers can also buy them.

  When interest rates fall sharply all else the same

NYC taxi medallions sold for $533,000 in September 2008, $615,000 in September 2010, and over $1.2 million early in 2011. Over the same period, the interest rate ("yield") on a 10-year US treasury note fell from about 4% to about 2%. Explain why the ..

  Global competitive environment

Given today’s fierce global competitive environment, a decrease in mandatory payments by employer to health care companies and providers for overhead health care benefits for workers would lead to an increase in what?

  Representative full-bodied money

Define, compare, and contrast both of the following sets of terms. a. Store of Value vs. Unit of Account b. Fiat money vs. Representative Full-Bodied money

  The rulemaking process to promulgate legislation

Choose an administrative agency you have learned about or encountered in the business world. Using this agency, create a scenario and walk the agency through the rulemaking process to promulgate legislation that pertains to your business sector of in..

  Then the entire repair process

Dan Unowsky manages a production group in a PC repair shop. He has noticed that the speed of repair is based on each worker doing one task. However, if an employee is out sick, then the entire repair process slows down.

  Sketch the monopolistically competitive firm demand curve

Sketch the monopolistically competitive firm's demand curve by plotting one point on the horizontal axis and a second point on the vertical axis.

  Qsuppose that a professor p has recruited a teaching

q.suppose that a professor p has recruited a teaching assistant mr. a. professor p needs to increase her payoff

  Profit maximization rule with examples and graphs

Critically evaluate the profit maximization rule with examples and graphs.

  When derivative contracts on standardized and traded

When derivative contracts on standardized and traded on an exchange:

  Efforts to develop a strategic advantage

Should innovation activities be linked to our efforts to develop a strategic advantage or should innovation efforts be experimental with an objective of finding products or services that may be profitable at some indefinite point?

  Explain why in cross-cultural negotiations

The Influences of Culture and Gender on Negotiations. Discuss the following statements. Assume the role of one of the five parties in the GLOBE Project Study case as you form your answers: Explain why in Cross-Cultural Negotiations, the heuristic of ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd