SHOW WORK FOR THIS PROBLEM ONLY A quarterly leak detection and repair program wi
ID: 1827550 • Letter: S
Question
SHOW WORK FOR THIS PROBLEM ONLY
A quarterly leak detection and repair program with a leak definition of 500 ppm to reduce fugitive emissions at a refinery is expected to have an annualized cost of $290,000. The current quarterly leak detection and repair program, which has a 10,000 ppm leak definition, has an annualized cost of $204,000. The lower leak definition of 500 ppm will reduce fugitive emissions by 195 Mg/yr. Please note that 1 Mg equals 1,000 kg. The value of the product lost in fugitive emissions is $4.20/L. Assume the density of the captured losses is 14 kg/L. Determine the net annualized cost of lowering the leak definition from 10,000 ppm to 500 ppm.
Explanation / Answer
195Mg -> 1000*195 = 195000
Density of the losses -> 14kg/L
Total litres of loss -> 195000/14 = 13928.57 Litres
Cost of product lost -> 13928.57*4.20 = $58,500
As product worth $58,500 will be saved by lowering the leak definition from 10,000 ppm to 500 ppm, the net annualized cost is $290,000-$58,500 = $231,500
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