A certain fluidized-bed combustion vessel has an investment cost of $100,000, a life of 10 years, and negligible market (resale) value. Annual costs of materials, maintenance, and electric power for the vessel are expected to total $10,000. A major relining of the combustion vessel will occur per year, what is the lump-sum equivalent cost of this project at the present time?
Question 4.UU: A certain fluidized-bed combustion vessel has an investment ...
P_{0} = − $100,000 – $10,000 (P/A, 15%, 10) – $30,000 (P/F, 15%, 5)
= –$100,000 – $10,000 (5.0188) – $30,000 (0.4972)
= –$\underline{165,104}
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