Profit-problems

# Profit-problems - Problem 8-5 pg 354 in PT&W You ne d to...

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You need to purchase insulation for a heat exchanger. The insulation can have different thickness. The exchanger operates 300 days/yr, and the value of heat is \$1.50/GJ. You also know the following: Thickness (m) 0.025 0.051 0.076 0.102 KJ/s energy saved 88 102 108 111 Cost of insul. (\$) 8,000 10,100 11,100 11,500 Annual fixed Charges (% of cost) 10 10 10 10 What insulation thickness should be used? Assume minimum acceptable rate of return 15%. ChE 4253 - Design I

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This information is available for two pumps Pump APump B Installed cost \$15,000 \$22,000 Service life, years 2 5 What is the annual rate of return for the two pumps to be competitive? Neglect salvage value. Which pump would you recommend? Competitiveness refers to the installed cost plus the amount to be invested at installation time in order to earn sufficient interest over the service life to replace the pump at the original cost (i.e., capitalized cost) ChE 4253 - Design I
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## This note was uploaded on 09/07/2009 for the course CBME Kinetics & taught by Professor Lobban during the Spring '09 term at The University of Oklahoma.

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Profit-problems - Problem 8-5 pg 354 in PT&W You ne d to...

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