3232ex5-2a (1) - General Project Life Analysis period = 2...

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Ex 5.2a: Analysis period differs from system life Case 1: System life is longer than analysis period Model A info: System cost = $150K System life = 6000 hours to major overhaul 2 systems required for project Operating cost = $40K/yr for 2000 operating hours/yr Systems used for 1 shift per day Salvage = $25K before overhaul Model B info: System cost = $240K System life = 12000 hours to major overhaul 2 system required for project Operating cost = $22.5K/yr for 2000 operating hours/yr Systems used for 1 shift per day Salvage = $30K before overhaul
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Unformatted text preview: General Project Life Analysis period = 2 years Cash flow, MARR =15% Year A B-300,000-480,000 1-80,000-45,000 2-80,000-45,000 Desired project end after 2 years 3-30,000-45,000 4-45,000 5-45,000 6 15,000 Note: Year 3A includes 50K salvage Note: Year 6B includes 60K salvage Research to find Year 2 salvage: System A: 45,000 System B: 125,000 Cash flow, MARR =15% Year A B-300,000-480,000 1-80,000-45,000 2 10,000 205,000 PE (15%) A = -362 (362,004) PE (15%) B = -364 (364,121)...
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This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

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3232ex5-2a (1) - General Project Life Analysis period = 2...

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