Which pipe size is more economical at an interest rate of 1%

Reference no: EM13174090

A chemical engineer is considering two styles of pipes for moving distillate from a refinery to the tank farm. A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost. The small pipeline will cost $1.7 million installed and will have an operating cost of $12,000 per month. A larger-diameter pipeline will cost $2.1 million installed, but its operating cost will be only $8000 per month. Which pipe size is more economical at an interest rate of 1% per month on the basis of an annual worth analysis? Assume the salvage value is 10% of the first cost for each pipeline at the end of the 10-year project period.

Reference no: EM13174090

Questions Cloud

How many square meters will the oil slick cover : A fishing boat accidentally spills 6.0 barrels of diesel oil into the ocean. Each barrel contains 42 gallons. If the oil film on the ocean is 2.5 × 102 nm thick, how many square meters will the oil slick cover?

What rate of return did the company make on the process? : A salvage value of $23,000 was realized when the process was discontinued after 8 years. What rate of return did the company make on the process?

Standards of ethical behavior : Sally has been in charge of the Atlanta division for Thomas Industries for several years. She has decided to educate her people on the basic standards of ethical behavior.

What is the mass of the slab of steel : The question is a slab of steel measures 1.01m x 3.72m x 11.1cm. Steel has a density of 7.86g/cm^3. What is the mass of the slab of steel?

Which pipe size is more economical at an interest rate of 1% : A small pipeline will cost less to purchase (including valves and other appurtenances) but will have a high head loss and, therefore, a higher pumping cost.

Published job market and the hidden job market : What is the difference between the published job market and the hidden job market? What techniques would you usually use to access the published job market? What techniques would you use to access the hidden job market?

Calculate the average density of the star : A star is estimated to have a mass of 1 1036 kg. Assuming it to be a sphere of average radius 7.0 105 km, calculate the average density of the star in units of grams per cubic centimeter.

Discuss some types of personal information : Discuss some types of personal information that companies collect from their customers and discuss what they are used for. How is information collected, and do the customers know about it? Do they have a choice in the matter?

Prepare public and private accounting position : Develop a thorough understanding of accounting standards and principles and fulfill the core accounting educational requirement to sit for the CPA exam.

User Account

All Pages