Engineering Economics and Economic Design for Process Engineers 1st. Edition by Thane Brown | 9781420008104 | 849382122 | Holooly

Engineering Economy

Engineering Economics and Economic Design for Process Engineers

52 SOLVED PROBLEMS

Question: 10.5

(Economic Pipe Diameter): Example 1 introduced finding the economic diameter of a pipe. This example will work the problem to completion. Consider the following pumping situation where 160 gpm of Newtonian fluid, having a viscosity of 20.6 centistokes (cs) and a specific gravity of 0.9, is pumped ...

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Using March 2005 costs, find the most economic pip...

Question: 10.7

As a part of an option study, you must make a preliminary selection of a pump that will pump 300 gpm of a clean fluid that has a viscosity of 70 cp. The available NPSH will be well over 5 ft, and the pump will have to develop about 300 ft of head. From a technical standpoint, all the types of pump ...

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Because all the pump types are feasible, pick the ...

Question: 10.6

You are doing a feasibility study for a process upgrade and are making a preliminary selection of a pump that will pump 130 gpm of a clean fluid, having a viscosity of 5 cp. The available NPSH will be more than 20 ft and the pump will have to develop a discharge head of 1050 ft (435 psig). You have ...

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Table 10.3 shows that the purchase cost ratio for ...

Question: 10.3

You have a heat exchanger with a carbon steel shell and tubes in your department that is about to fail due to corrosion. You are considering two options — replacement in kind (carbon steel shell and tubes) or replacement with a unit having 314 stainless steel shell and tubes. The present unit had ...

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After using the cost checklist in Table 10.1, TABL...

Question: 10.2

Consider the selection of materials for a pump in corrosive service where there are several possible materials of construction. The materials that extend the life of the pump are more expensive. The question is, what is the best economic choice? Say there are three options: ...

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When faced with this kind of situation, one looks ...

Question: 10.4

You are part of a team designing a new plant and have responsibility for process B. You are considering three alternates. All meet the project’s technical requirements and are sound from an environmental and safety standpoint. You have estimated capital and production costs for each option; they ...

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Your company’s tax rate is 40%, its hurdle rate fo...

Question: 5.AT5.3

For a project having the following cash flows — capital of $100K (spent in Year 0) plus revenues and product costs of $30K per year and $25K per year (Year 1 through Year 10) — find the ROI for four situations: constant dollars, 5% per year, 10% per year, and 15% per year inflation rates. Use a 35 ...

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Compare ROIs calculated exactly to those estimated...

Question: 5.AT5.2

Is the ROI of a $22.8M capital project that returns $9.2M per year of gross BT revenues equal to or greater than 15%? Assume a 10-year life and a tax rate of 35%. Because these economic conditions are the same as in Example AT5.1, we will use those guidelines. ...

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Calculate the Capital/Revenue ratio: Ratio = $22.8...

Question: 5.AT5.1

Calculate a rapid ROI estimator based on a hurdle rate of 15%, a project life of 10 years, and a 35% tax rate. ...

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To solve this problem, a rephrasing will help: wha...

Question: 5.10

As part of a new product feasibility, you are studying how much capacity should be built for making and packing a new product. Because a great deal of uncertainty exists about how much volume the new product will generate, you have decided to do a decision tree analysis to help sort out the best ...

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First, draw the decision tree (Figure 5.7). Find t...

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