What is the minimum number of hours per year

Assignment Help Financial Management

Reference no: EM132072485

In a reverse osmosis system, the water can be cooled using one of two systems: a single-pass heat exchanger or a closed-loop heat exchange system.

1. The single-pass system, good for 3 years, requires a small chiller costing $S=858 plus stainless steel tubing, fittings, etc.. costing $T=285. The cost of water, treatment charges, electricity, etc., will be $C=3.03 per hour.

2. The closed-loop system will have a useful life of 5 years, cost $P=4, 102 to buy. and will cost $X=1.23 per hour to operate.

The salvage values are negligible. The company's MARR is 10%.

What is the minimum number of hours per year that the cooling system must be used in order to justify purchase of the closed-loop system? (Round your answer to a whole number of hours - no decimal places)

Reference no: EM132072485

Questions Cloud

What is days sales in receivables for the current year : What is days' sales in receivables for the current year? What is the book value per share of common stock for the current year

Calculate the implied interest rate based on current value : The Reuth Corporation plans to issue $20,000,000 of 10-year bonds at par next June, with semiannual interest payments.

Frequency and the number of clicks per second : What is the difference (in Hz) between this frequency and the number of clicks per second actually emitted by the dolphin?

Percentage of the speed of sound : The bird-watcher, however, hears a frequency of 1130 Hz. What is the speed of the bird, expressed as a percentage of the speed of sound?

What is the minimum number of hours per year : What is the minimum number of hours per year that the cooling system must be used in order to justify purchase of the closed-loop system?

How much sound energy is incident on eardrum during time : An eardrum has an area of 3.33 x 10-4 m2. How much sound energy is incident on the eardrum during this time?

Two sources of sound are located on the x axis : Two sources of sound are located on the x axis, and each emits power uniformly in all directions. There are no reflections.

How much are you willing to pay today to purchase stock : Revelation Co. just paid its annual dividend of $3 per share. The company has been reducing the dividends by 7.9 percent each year.

Concentration of methane in the atmosphere : What is the cross-sectional area of the pipe? Assume that the concentration of methane in the atmosphere is zero.

User Account

All Pages