A pressure vessel is needed for a new process involving corrosive chemicals. A c

Question

A pressure vessel is needed for a new process involving corrosive chemicals. A carbon steel vessel will cost $6000, with an annual maintenance cost of S5000 per year, and a service life of only 3 years. A hastelloy vessel will cost $25,000, with an annual maintenance cost of $2000 per year, and a service life of 10 years. Assuming the plant will be run for many years to come, and each vessel is replaced every time its service life is reached, which vessel choice is more economical? (1min-10%, before tax analysis). (20 points) 1. n vesse (inn

Explanation / Answer

The equivalent uniform annual cost of Carbon steel vessel = $ 6,000 ( A/P , 10% , 3 years ) + $ 5000

The equivalent uniform annual cost of Carbon steel vessel = $ 6,000 * 0.402115 + $ 5000

The equivalent uniform annual cost of Carbon steel vessel = $ 7,412.69

The equivalent uniform annual cost of hastealloy vessel = $ 25,000 ( A/P , 10% , 10 years ) + $ 2000

The equivalent uniform annual cost of hastealloy vessel = $ 25,000 * 0.162745 + $ 2000

The equivalent uniform annual cost of hastealloy vessel = $ 6,068.25

The hastealloy vessel is more economical because its equivalent uniform annual cost is less than that of Carbon steel vessel.

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