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7-5 A heat exchanger is to be used in a heating process. A standard type of heat exchanger with a negligible scrap value costs $20,000 and will have a useful life of 6 years. Another type of heat exchanger with equivalent design capacity is priced at $34,000 but with a useful life of 10 years and a scrap value of $4000. Assume an effective compound interest rate of 6 percent per year and that the replacement cost of each exchanger is the same as that of the original exchanger. Determine which heat exchanger is cheaper by comparing the capitalized cost of each. See Prob. 7-4 for a definition of capitalized cost.

7-5 A heat exchanger is to be used in a heating process. A standard type of heat exchanger with a negligible scrap value costs $20,000 and will have a useful life of 6 years. Another type of heat exchanger with equivalent design capacity is priced at $34,000 but with a useful life of 10 years and a scrap value of $4000. Assume an effective compound interest rate of 6 percent per year and that the replacement cost of each exchanger is the same as that of the original exchanger. Determine which heat exchanger is cheaper by comparing the capitalized cost of each. See Prob. 7-4 for a definition of capitalized cost.

Introduction to Chemical Engineering Thermodynamics
Introduction to Chemical Engineering Thermodynamics
8th Edition
ISBN:9781259696527
Author:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Publisher:J.M. Smith Termodinamica en ingenieria quimica, Hendrick C Van Ness, Michael Abbott, Mark Swihart
Chapter1: Introduction
Section: Chapter Questions
Problem 1.1P
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7-5 A heat exchanger is to be used in a heating process. A standard type of heat exchanger with a negligible scrap value costs $20,000 and will have a useful life of 6 years. Another type of heat exchanger with equivalent design capacity is priced at $34,000 but with a useful life of 10 years and a scrap value of $4000. Assume an effective compound interest rate of 6 percent per year and that the replacement cost of each exchanger is the same as that of the original exchanger. Determine which heat exchanger is cheaper by comparing the capitalized cost of each. See Prob. 7-4 for a definition of capitalized cost.
Transcribed Image Text:7-5 A heat exchanger is to be used in a heating process. A standard type of heat exchanger with a negligible scrap value costs $20,000 and will have a useful life of 6 years. Another type of heat exchanger with equivalent design capacity is priced at $34,000 but with a useful life of 10 years and a scrap value of $4000. Assume an effective compound interest rate of 6 percent per year and that the replacement cost of each exchanger is the same as that of the original exchanger. Determine which heat exchanger is cheaper by comparing the capitalized cost of each. See Prob. 7-4 for a definition of capitalized cost.
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